[funkyy]

Simple 1% revenue tax on companies with revenue of more than $15 million would fix the issue. No other taxes, just revenue one, no tax credits, no refunds. No hiding costs, no going offshore, no creative accounting. One tax on all revenues that will hit your account. This would also help to cut out all the middle man driving prices up and make the logistic chain quite small.

Some countries want to experiment with this starting with foreign corporations, we will see.

[1123581321]

That would cause an immense consolidation as the 1% would be applied to the revenue of every country in a manufacturing/logistics chain and add up to a sizeable percentage of the final cost. More companies would take the Apple route and do as much as possible so that there would be fewer 'revenues' to tax per good made/service provided. Perhaps that is your goal.

[funkyy]

Goal would be to remove middle man and shell companies. When you look at the product offered by lets say Samsung, how many companies such a product would go after removing middle man, 5? Mine -> Parts Manufacturing -> Producer -> Distributor/Licensor -> Sales Point (Mine -> Some small manufacturer making simple parts -> Foxconn -> Samsung -> Shop in Vancouver). Thats 5% tax on whole product that will not have added sales tax anymore. Thats low, probably would lower the price of product by huge. And there is no tax credits etc so no place to exploit. As simple as that, so companies can focus on what is important, especially growing ones.

[joesb]

์So every broker company who makes profit on 0.05% transaction fee is going bankrupt, and no more high-volume low-profit business.

[funkyy]

I assume you write this as a bad thing?

Its better for economy if brokers would focus on long term trades. Also usually high-volume low-profit businesses are the ones that are arbitrating prices and often are just middle man. No need for that. There is a way around. Obviously there would be FEW businesses that would be affected and need to change the way they work, but this comes always with any tax changes.

Anyways, I said all revenue that hits your account. Brokers usually don't keep their money in bank accounts, but in investment accounts, right? Until the money hit their actual bank account they would pay null on trades. So they would pay tax on all withdrawals and payouts to customers.

[twoodfin]

I assume you write this as a bad thing?

I don't know about you, but I really like what Amazon provides to me, and am quite glad corporations like it aren't strangled by our tax code.

[funkyy]

If the whole chain of production and sales would be relieved from paying accountants and being charge stupid tax, then the overall prices would fall. You give me an example of Amazon. Would 3%* of overall cost added to the end product be higher than 3 companies sustaining their accounting teams going over taxes etc. + you required to pay sales tax? Revenue tax = no sales tax. Still think it would be more expensive?

1 very low tax to replace all the taxes from the producer to customer seems like much better option than being "not strangled" by current tax laws.

*3% assuming there is producer, distributor/owner and Amazon in the chain.

[crazy1van]

> Simple 1% revenue tax on companies with revenue of more than $15 million would fix the issue.

What country can levy this tax? Large companies like Apple have operations in lots of countries. Do they have to pay each one 1% of their raw revenue?

[funkyy]

Its the revenue got in that country. If Apple gets $300 Mil in revenue to their bank account generated in Canada they pay $3Million tax to the Canadian government, as simple as that. Its tax on revenues that company got to their bank account in the country where they operate. If they want then move the money to US and US would have same rules, they would end up paying another 1%. Total of 2% tax for transferring money from Canada to US for example does not sound that bad, huh? Thats the amount of money PayPal would charge for 1 transaction. And this is all, no hidden tricks - this would result in huge increase in revenues country would get and almost completely wiping out black market as such a low taxes are not worth to avoid for small businesses.

Poland is one of the few countries that already have this tax, but it is high now (I think around 20%) and optional. There is a lot of public discussion to drop it to between 0,5-1% on all revenues for all foreign owned companies making more than €15Mil/year. This got really popular after information that Google is reporting constant losses and not paying taxes despite ridiculous high revenues from local market.

[e12e]

You're saying I need to divide my $25 million revenue corporation into two?

[funkyy]

To go through the pain and cost of doing regular taxing and being on the mercy of tax office? Sure.