Re: Suggestions?
@Anon...
"Alternatively stop trying to tax companies as a big multinational can make profits or losses realize in any country they choose."
>> With you so far.
Instead make sure you tax the employees, apply VAT in the country of the buyer (or advert clicker)
>> Uh uh.. So put income tax up? Are you linking this policy to a mandatory rise in Pay? Or are you expecting all employees to take a pay cut?
Also, As you pointed out above companies can make and realise profits anywhere they want, this is also true of staff... companies can opt not to employ people in the UK where due to Minimum wage/NI contributions, Pensions etc it is expensive and instead hire an entire workforce in East Elbonia where labor is cheap.
"and most importantly tax the shareholder dividends and capital gains on the shares as if they are income not some magical reward for investing in the company."
>> Three consequences of that off the top of my head:
1. Small companies suddenly become more expensive to run.
2. People stop investing in companies because its no longer worth it.
3. Shareholders no longer pay ANY tax on dividends because suddenly their bank accounts are in the Cayman islands. *
Its already worth it for really rich people, your just making it more attractive for moderately well paid people.
Biting the hand that feeds IT
