[NutriSugar]

Seems fine to me. When I make a loss for a year, I still have to pay income tax. And by making it apply to all local business regardless of where the company is located, they can't hide from it if they want to do business with the market in the area. And if they don't, someone else will.

[jopsen]

I'm skeptical of the side-effects...

Because of how VAT works we have a lot of companies in the EU that lives by essentially reselling stuff. These chains can be long.

If you apply revenue taxing to low profit margin businesses with high turn-over and long supply chains we'll see some negative results.

It's a decent way to hit tech giants, because a substantial part of the revenue is profit. But the unintended victims might be numerous on this one.

[snark42]

> When I make a loss for a year, I still have to pay income tax.

Where are you? When I write off business losses that are paid through my personal income taxes I can end up owing no income tax in the U.S.

[kodablah]

GP didn't mention that the losses were business/deductible losses.