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by charlesdm
4213 days ago
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That's quite an ignorant answer. At the basic level, corporations should be able to operate and turn a profit, regardless of whether they're low or high margin. That shouldn't even matter in a discussion, since both high and low margin businesses create jobs, and are a good thing for the economy. Some businesses just need bigger scale, but that doesn't make them worse businesses. Yes, they're avoiding taxes, but a lot of these companies are still highly profitable without the tax avoidance aspect of it. That's just the 'icing on the cake', and I'm pretty sure if they didn't, some (activist) shareholder could probably force them to do so. This is the world we live in. In the end, tax is just another corporate expense. This tax problem can't be solved without significant international cooperation, and I'm a big fan of simplifying the tax code of countries globally. |
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Nobody has a right to the profits they are accustomed to. Buggy whip manufacturers have no right to make a living. And businesses that require exotic tax exemptions to exist might fall in the same category. Again, I think it's more fair to gradually phase out current tax schemes and phase in new ones so the economy isn't shocked by a massive rule change, but I don't see why any business has the right to broadly fix the current tax rules in place forever.
And, at the end of the day, any tax increases will be (and are) passed on to end consumers. It's not as if gas stations go out of business because their expenses go up (oil prices, credit card fees, etc.). They raise and lower their prices to accommodate price changes. And longer term, they adjust their business models as well.
All that being said, I don't even really care about gross vs. net taxation. I just believe this line of thinking doesn't add up.