Re: Corporations paying zero tax, a solution?
"Let's call it a £1M transaction to keep the numbers small and easy. You tax that at 1%."
ok, lets. Why would I tax it to 1% ? If this money goes to a "friendly" place, I might indeed tax it at 1%, or even 0.1%, but if it's going to a place where I know you're going to leverage 100:1 and do HFT that destroys my economy, you can bet I won't let you get away that cheap. Let's rather talk about a 30% tax here.
"If I repatriate a small slice of the profit, you might get to tax that.... then again, you might not. I'd just buy the Rolex abroad and wear it home.
sure. Then I'll see you travelling, and my custom agents might ask you to open your bag. And how are you going to transport that Porsche, that Bose home-cinema, those boxes of fine Champagne, that private jet ... that you want to buy with your hard earned money ? Because they are manufactured by people living here and thanks to good infrastructure and education, all paid-for by taxes.
"All you've really achieved is to drive the vast bulk of financial transactions offshore"
no, I have effectively made them unprofitable, but not only here, in many places. Because even if the financial world pretends to have its own life, at some point there is collateral, and a financial transaction tax is effective when you need that collateral, so it will, in effect, starve the financial world of real-world collateral. Especially as most collateral is government bonds, which are geographically bound.
offshored a lot of bank workers job
good riddance. But it's also funny in a historic perspective.