Reply to post: Re: taxation vs economic activity

European nations told to sort out 'digital tax' on tech giants by end of year

Long John Brass Silver badge

Re: taxation vs economic activity


Yes taxation depresses economic growth. However if $BigCorp doesn't pay their share, then the slack must be picked up by others. Roads, Police, Military, Water, Power infrastructure there are many things that taxes pay for that we all use. You end up in a tragedy of the commons type of situation if some players don't pay their share.

Now the question becomes how do you encourage (force) entities to play fairly? I don't know the answer, don't think anyone does; If they did there would be a well established protocol for that. The fact that everyone is banging around trying everything and anything in hopes of stumbling across the right answer is proof of that.

The argument "are the taxes here or there too high or too low" is moot until we can find a way to make sure that in a globally interconnected world that at least the majority of players either can't cheat or won't cheat for $reasons.

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