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by michaelt 1835 days ago
I've got some sympathy for this in the case of countries other than the US and China.

After all, if Stanford does research funded by the US taxpayer, develops a new ML technology and gives it away for free, Google/Facebook will make a bunch of money from it, which they'll pay US taxes on.

But if École Polytechnique does research funded by the French taxpayer, develops a new ML technology and gives it away for free? Google/Facebook will make a bunch of money from it, which they'll pay US taxes on - while the French economy will see a much smaller upside.

1 comments

> Google/Facebook will make a bunch of money from it, which they'll pay US taxes on.

hahahhaahhaaa. Um no. Possibly some Irish taxes? Maybe some Virgin Islands taxes?

You’re confusing federal income tax with federal taxes in general. Google pays significant federal taxes any time they grant out stock or pay cash to employees/execs via payroll taxes.

There isn’t a way to avoid the taxation when that excess profit leaves the company somehow to shareholders. Even buybacks that cause stock appreciation lead to significant fed revenue when people sell.

At the very least they're going to be doing payroll taxes.
Google and Facebook are both multinational companies, employing people in many different countries. I guess there's probably a majority of their payroll expenses in the USA, but I have no idea.