Sky_Blue_Dreamer
Well-Known Member
Thing that I'm not on board with is that it's talking about corp tax and how it should be related to where the sale is made, but that's a conversation about sales taxes, like VAT.
Where the sale is made could result in poorer countries doing almost all the work making products etc but getting very little while rich nations get loads in tax because all the do is sell it there because it's richer. Massively going to favour the US which is large, rich and lives off consumerism.
Also encourages consumerism in individual nations which will be hugely damaging to any kind of environmental/climate strategy.
Only way something like this might work is if each country has to set up it's own company and when something passes from one country to another it has to be given a transfer price so each nation receives its fair share of the goods value as it passes up the chain towards the final consumer. This is how many large corporations work anyway between departments.
Of course it works best for traditional products and industries but in a technological age it's much more difficult. For example stuff like YouTube. It could be uploaded in one country but predominantly watched in another. How would you split the ad revenue etc up for something like that?
Where the sale is made could result in poorer countries doing almost all the work making products etc but getting very little while rich nations get loads in tax because all the do is sell it there because it's richer. Massively going to favour the US which is large, rich and lives off consumerism.
Also encourages consumerism in individual nations which will be hugely damaging to any kind of environmental/climate strategy.
Only way something like this might work is if each country has to set up it's own company and when something passes from one country to another it has to be given a transfer price so each nation receives its fair share of the goods value as it passes up the chain towards the final consumer. This is how many large corporations work anyway between departments.
Of course it works best for traditional products and industries but in a technological age it's much more difficult. For example stuff like YouTube. It could be uploaded in one country but predominantly watched in another. How would you split the ad revenue etc up for something like that?
