Comments on: Apple tax fight needs global response Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 By: kbill Mon, 27 May 2013 17:31:18 +0000 It is in the nature of governments and their politicians to compete for taxable business ventures. The result of this competitiveness among nations, states, provinces, cities, is that a company is able to create a profit in spite of the taxing tendencies of its own local government thereby causing governments to create competitive laws and codes; for example, clothing distributors can overcome the distance-costs between their customers’ markets and the manufacturers of that clothing in Bangladesh…said simply, it makes business sense to invest in Bangladesh.

If the tax-field is “leveled” across the globe, by some dictatorial mandate of the U.N. or other Utopian dreamer there is no reason to go to Bangladesh, or Ireland, or Detroit, or Monterrey, Mexico, or Johannesburg, or Kabul, or Tel Aviv…in other words the motivation to invest, develop and improve is neutralized with an ultimate result of spreading even less wealth.

If its all equal on taxes, me and my money might as well just stay home, invest in Gold, and wait for the Utopians to put the poorest countries out of business, and back into 3rd world (or worse) status (again — just like the good old days).

The tax distraction is just that, a distraction. The real story, for example, is the improvement to day-to-day plight of the man on the street which the clothing distributors have brought to Bangladesh…and yes, the safety, security, and hygiene of the workers and their families must improve, but not by killing the very reason for business to be there, i.e., the combined attractive costs of taxes, labor, and occupancy.

The unintended result of level, global taxation will be the return of bone-crushing poverty to those nations and cities who are just now achieving 2nd World economic status.

By: walstir Mon, 27 May 2013 17:30:13 +0000 “The next step is an agreement to tax profit where it is actually, not legally, earned”
An American in Seattle books a hotel room in Paris on a web server in Dublin. Where is that profit actually earned?

By: jonnycooper Wed, 22 May 2013 21:12:54 +0000 A reasonable global rate for corporation taxes is a utopian dream. There will always be jurisdictions which do not need to raise as much tax revenue as others, or simply choose to attract commerce with appealingly low rates. As sovereign nations, it’s their right to set their own fiscal agendas, and who’s going to make them do otherwise? I’m an advocate of increasing tax on spending, and reducing tax on earnings, whether personal or corporate.

If every company and individual in the major developed economies paid a flat 10% on earnings, there’d be little incentive for avoidance. If sales tax were a flat 25%, that’d still be fair as we could effectively choose what we bought and therefore how much tax we paid.

It’s unnecessarily high direct taxation, not the inevitable attempts at avoidance which should be under scrutiny.