I'm not really mad at companies for doing this, I'm sad that the same ways are not available to ordinary overtaxed people.
Ordinary people that have written books or songs or otherwise earn royalties from creative works on a regular basis could probably have arranged for ownership of their royalties to be owned by a complex corporate structure as well, but I don't know that very many ordinary people earn enough in royalties that tax avoidance is worth the setup and maintenance costs.
I understand that the web of various tax laws and trade agreements makes this impossible though. 80 years of cruft is too much to sift through to improve things in one fell swoop I suppose.
My understanding is that the whole problem stems from companies being able to choose. Apple chose to pay taxes in Ireland for some things, because Ireland gave them a tax advantage, thus avoiding taxes in other European countries.
Allowing import tariffs between EU countries would maybe help with this but cause other problems. The EU free market isn't a whim, it has good reasons to exist and significant benefits.
There is no "clear way" to fix this. If there was, it would be used already.
What do you mean by "this"? When I said "this", I meant this specific form of tax avoidance. There is a clear way to fix it, as I mentioned.
When you say "this" it seems like you mean tax avoidance in general, in which case I would agree that there is no clear way to fix it.
You should be asking the same questions that companies are asking: instead of “why arent we getting hosed equally” its “why are we getting hosed at all”
That's just dictatorships man, you gotta keep playing the game well or you end up tortured to death in a salt mine.
In fiscal year 2021 the IRS managed more than $4.1 trillion in tax revenue. The annual tax gap was estimated at $688 billion in 2021, with $625 billion remaining uncollected even after enforcement efforts.
16.7 percent.
~$5.3 trillion doesn't solve the US’ budget holes, while the US government tells you what transactions to make to not be taxed
It's not really related to the amount of taxes that are legally avoided by big businesses through techniques like this "double Irish Dutch sandwich."
What is your preferred outcome?
A society that isn't lifted by redistributing wealth through taxes creates nothing but a more inequal and dangerous society for everyone.
We can all argue about inefficiencies, what is the right amount of spending and funding, but redistributing taxes by creating socially needed projects, from roads that you use, to ports through your shipments to policing streets so your daughter is safer when she goes out with friends. The list is so long.
People don't even realize how much wealth and prosperity has been created by redistributing wealth through taxes.
I mean.... the government is taking tax money from the "poor" (so, normal workers, who cannot avoid paying taxes the way the article described, and whatever new way will be used after the changes), and giving them to a few friendly corporations who give back a percentage to politicians and normal peple usually get nothing.
I don't think they realize the kind of place they would end up living in.
Can I ask where this claim originated from please?
I use that government’s official sources to do that math
Additionally, in some nations, there are underfunded liabilities, future necessary spending
And it all far eclipses what the nation makes in revenue from taxes, tariffs and productive industries it owns - if any
If there an aspect of accounting that I’m misunderstanding, by all means enlighten me
You mean the source of the claim is you, you personally did the math for all "high tax nations" whatever those are, and you're presenting the claim without any of the math or explaining any qualifier like "high" from "high tax"?
Swell.
I am, regardless of the effect on individuals, it skews the market away from smaller entrants and allows those that have reached enough of a size to be able to afford to play these games to leverage a huge advantage.
They can present themselves anyway they like but it does leave a bad taste in the mouth.
Because people are often overtaxed due to high tax elusion/avoidance/evasion.
E.g. in Italy, around 10 to 15% taxes are evaded in many ways. That bill is then paid by regular taxpayers.
If even more people avoided taxes that would just make the issue worse.
If company X can pay just <small percent> of their income as taxes (all together), why can't random bobby do the same?
The law requires you to have a fire extinguisher in your office? Sure, buy one, but since it's a cost of doing business, that money comes from the pre-tax pile and is not taxed extra. The law requires me to wear pants when I go out, why do i have to buy them from post-tax pile of money (so, after ~50% gone to the government), and still pay 9.5% VAT on them? I can buy those same black jeans as a company (eg. consider black jeans a work uniform), and avoid all those taxes). Rent? Pre-tax money for a comoany, post-tax for an individual. In some countries (eg. mine, slovenia) you have even bigger stupidities... you have a CO2 tax (and some other) on gasoline (and other fuels), and you pay VAT on top of that tax... the co2 tax included in the base to calculate the VAT... you literally pay taxes on taxes. Again, businesses don't have to pay that VAT (they deduct it) because well.. they need the company car to do business.
yes, I believe car ownership should be more accessible to people to be able to ponder such a drive
When was that?
I mean, I can show you the video: https://www.youtube.com/watch?v=Nl_Qyk9DSUw
But that has nothing to do with Bill Gates or any other person named Gates. (You might be aware that Bill Gates isn't a woman.) It's a joke on a comedy show. It's not something anyone has ever said.
There are plenty of reasons why they do not, but in almost all cases they are not good reasons. There are some extreme exceptions, but then you're outside of "ordinary".