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Tax compatibility is a pretty solved problem - countries frequently coordinate to make sure income and other taxes don't end up being double counted so it's not
by munk-a 4y ago
Tax compatibility is a pretty solved problem - countries frequently coordinate to make sure income and other taxes don't end up being double counted so it's not like this would happen accidentally[1]. And the point isn't so much that the US should collect all this revenue - it's just to make tax havens moot and unnecessary.
Why spend money shipping laptops to Bermuda so you can put a sticker on them there if you aren't saving any money?
1. There's a positive incentive here, if you work and live in country A and are considering working in country B either country B can craft their tax system so that you won't end up paying the same taxes to both country A or country B... or they can not do that. If they fail to make their tax law compatible they lose out on your tax income (it instead all goes to country A) since nobody wants to be double taxed - if they make their tax laws compatible then they essentially get some free income and another earner. Digital nomads pulling down six digit salaries in low cost of living countries also injects a whole lot of money into the local economy and generally just makes things better - and the country retains the right to limit visas if they ever have any issues with it.
- dragonwriter 4y ago> Tax compatibility is a pretty solved problem Tax compatibility with VAT only is a sensible concept where the destination country has a VAT itself, which the US does not. Otherwise, a minimum VAT on imports is just a global punitive import tariff, and has nothing to do with compatibility. Even where its sensible, it still has potential problems that can be introduced through other parts of the tax system, but…we don’t really need to consider that in this case.