Reply to post: @sjiveson - tax blackmail

Tim Cook: EU lied about Apple taxes. Watch out Ireland, this is a coup!

DougS Silver badge

@sjiveson - tax blackmail

No, companies shouldn't blackmail governments over taxes but it happens all the time. Not just on an international level. In the US companies will move from one state to another, or choose the site of their factory, based on tax incentives they are offered. Sometimes the laws are written so that only that one single company can take advantage of them!

It even happens at a local level. A department store based for at least 20-25 years at a mall located in the city where I live was induced to move about 5 miles to a suburb thanks to a property tax break of $1 million a year for 15 years. You'd think that wouldn't happen between cities that are "neighbors" but they wanted an anchor store for a new riverfront re-development they were doing and the fact it would leave a big hole in that mall that ended up taking almost five years to fill didn't bother them in the least. They also gave countless smaller incentives to smaller businesses that located there, providing them a big unfair advantage to competing smaller businesses who didn't know the right people to be offered those deals.

If I had my way, there would be a nationwide law that there can be no tax breaks, interest free loans or similar incentives to influence a company's decision where to locate or relocate its facilities. But good luck ever getting that passed, I'm sure the government officials involved are often 'greased' one way or another. Probably sacks of cash are rare, but taking them out for expensive dinner, or a trip to NYC or Hawaii on a "fact finding mission" or season tickets in prime seats to football games, or a management job for their daughter....I'm sure kickbacks are plenty even in the small scale of local stuff. Can't imagine what sort of kickbacks would be at play on the EU level, but I'll bet the officials making tax policy decisions are set for life after they leave their bureaucrat job with bureaucratpay.

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