[mattmanser]

If I didn't buy an iPhone, I'd buy a different phone. The VAT would still be there. If I didn't use Facebook I'd be using a different image sharing service, or chat service, or whatever. The VAT would still be there.

Because I have a budget to spend on entertainment, and various companies compete for that budget.

We pay those taxes, Facebook/Apple doesn't 'generate' anything, that money would be spent on a different entertainment. We pay income taxes, if we didn't work for Facebook/Apple, we would have to find a different job, perhaps start our own company, etc.

I want to make this super clear. Those taxes, including income taxes, are our contributions, not Facebook's. The citizens are generating that money. If Facebook didn't exist, there would be a company filling that void with an alternative entertainment which VAT would still be charged on.

Now, on the flip-side, it's not entirely zero-sum and Facebook does increase the overall wealth. They are generating new markets, new growth, etc.

But is it by the percentage of money its extracting from the local economy? Of course not. And worse still, that money's sitting in an offshore account somewhere, not even flowing back into the US economy, because they're waiting for a tax break. So instead of doing what it's supposed to do, which is spur more growth, it's doing the worst thing it can, which is being excluded from the world economy.

[raverbashing]

Yes, VAT is payed 'by the consumer', and if people weren't buying Apple phones they would be buying something else, fair enough.

I just find it funny how the solution to lack of money is always wanting to squeeze more taxes from the companies and people instead of optimizing goverment spending (optimizing, not cutting)

Ah of course, living withing your means is now called 'austerity' and it's bad because?

[icebraining]

And worse still, that money's sitting in an offshore account somewhere, not even flowing back into the US economy, because they're waiting for a tax break. So instead of doing what it's supposed to do, which is spur more growth, it's doing the worst thing it can, which is being excluded from the world economy.

Not really. "New Data Show Corporate Offshore Funds Not “Trapped” Abroad: Nearly Half of So-Called “Offshore” Funds Already in the United States": http://www.hsgac.senate.gov/subcommittees/investigations/med...

[joesb]

That even makes more valid point that since VAT in Europe is European customer's contribution, it should stay in Europe.

[guard-of-terra]

Before Apple did iPhone, modern mass-market smartphones didn't exist and VAT from old-school smartphones was probably 10% of what it is today.

Before Apple did iPad, VAT from tablet sales was virtually zero.

I think you should tax what is easy and straightforward to tax; not aim for a "perfectly fair taxes".

Anyway, it shoud be good to you that you are paying taxes and not Apple. Next time Apple wants to ban phones with square screens, you tell them to back off because they don't pay taxes. You should get a voice here and you should to get your message straight. If you can't - blame your government and work towards digital democracy.

[o0-0o]

I beleive you mean 'bane' and not 'boon'. Check out an old goldminer's reference. :)