3 ms·
>Corporate ethics wise it is more interesting why consumers want corporations to pay more tax as it effectively increases prices. Because taxes (help) pay for
by M2Ys4U 13y ago
>Corporate ethics wise it is more interesting why consumers want corporations to pay more tax as it effectively increases prices.
Because taxes (help) pay for the negative externalities that arise from the corporation doing business.
>A better question would be posed to our governments on tax reform and simplification. But we all know the loopholes exist somewhat intentionally, otherwise they would have been closed already. The fact they're not getting closed indicates that our perception of what a company should pay and what they're legally obligated is basically wrong.
The problem exists because of the international tax framework, and getting the governments of all the jurisdictions involved to reform the tax system is harder than a single country unilaterally doing so - especially when it greatly benefits some countries at the expense of others.
- mitchty 13y agoAgreed, I'm not saying tax reform will be easy. Just noting that blaming corporations for exploiting, though thats a bit of a loaded term, perhaps advantageously utilizing existing tax structures is a bit naive. The incentives currently mean a corporation would be wrong to ignore tax breaks, that coupled with for example the corporate tax rate for money repatriation in America for example means that less tax income is generated at current law interpretation. Basically is 35% of 0 dollars better than 10% of N dollars? In the US that is effectively our current dilema is it not? Our tax rates for certain things are so high people have no incentive to get double taxed in two disparate countries so they leave the money outside of any taxable entity. Improving the incentives to bring money back would seem to be a no brainer as it is a bit of a win/win situation to both sides. As to disparities amongst countries, I'm not sure there ever could be a solution outside of some overreaching treaty agreements. Past that I'm sure there will always be a Caymans willing to lower their costs at the expense of the rest.
- ippisl 13y agoOne solution to avoid the need to coordinate between countries is tax access to markets, meaning just use VAT. Of course there will be a need to collaborate on equal taxes between states. But as people said here the loopholes are probably deliberate.