3 ms·
> engineering that went into delivery was made in the US That's a cost, not profit. > the content was made in X Cost, not profit. > the deal for the content
by mpweiher 4y ago
> engineering that went into delivery was made in the US
That's a cost, not profit.
> the content was made in X
Cost, not profit.
> the deal for the content was negotiated in Y
Negotiating the deal also sounds like a cost to me.
> network source is Z
Cost.
The profit is made where you get money, not where you spend it.
- toast0 4y agoIf you paid an external company to make all those things for you, they'd have profit in all those places, but if you do it in house, the profit just moves to the point of sale? Why not replace income tax with VAT/sales tax if sales is the basis of taxation anyway?
- everforward 4y agoThat doesn't account for infrastructure/governmental costs associated with creating the stuff that makes the profit. As a hypothetical, if a German company writes some software and US companies are the only ones that buy that software, the US harvests 100% of the taxes on profits while the German government is left holding the bill to take care of the roads that lead to the office, electricity infrastructure, employee's healthcare, etc. It puts the government in a weird spot where they really don't want any businesses that primarily sell to foreign countries since they don't get tax revenue to fund public services for that company.