If worldwide tax gets implemented for every business, then it still wouldn't be too bad

[JamesDonkey]

Let's say, they implemented world-wide minimum tax of 10% yesterday, for every business whether it be big or small, and there was no place on Earth where it was less than 10%. Then it'd still be fine, because if there's 10% tax, then it's a tax for EVERYONE which is effectively cancels it out all together. If everyone pays 10% in taxes, then no one pays 10%. For everyone who has business has to accomodate these 10% in the prices of the services or goods than he provides.


Namely, there's no difference: 1) sell a product for $100 and pay 0% of tax, or 2) sell it for $110 and pay 10% of tax? As long as everyone on Earth is taxed at minimum 10%, and, therefore, has no competitive advantage by paying less than 10%.


Right?

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There may be 2nd and 3rd order consequences. But as for the 1st order ones, there's no difference.

 

[Rzeznik]

Right?

Minimum tax is great for big countries because it raises the bar so no one runs away with their business, plus when you add the exit tax penalty.

What would then be the point of going to a small country on an island or not and investing there? Often the big rich countries have good infrastructure, and the bigger the country the more automated and cheaper everything is. Small countries on islands like Gibraltar/Malta/Dominica have close to 0% chance without tax privileges to attract anyone. Cost of building real infrastructure getting people on ground is big.
Sometimes 0% helps attract business.

 

[JamesDonkey]

What would then be the point of going to a small country on an island or not and investing there? Often the big rich countries have good infrastructure, and the bigger the country the more automated and cheaper everything is. Small countries on islands like Gibraltar/Malta/Dominica have close to 0% chance without tax privileges to attract anyone. Cost of building real infrastructure getting people on ground is big.
Sometimes 0% helps attract business.

The point of going to a small island will be that while a small island would have to introduce those minimal 10% of tax, bigger countries would increase their taxes even futher - I think. That is, everything would cancel everything out.

 

[avalanche]

Let's say, they implemented world-wide minimum tax of 10% yesterday, for every business whether it be big or small, and there was no place on Earth where it was less than 10%. Then it'd still be fine, because if there's 10% tax, then it's a tax for EVERYONE which is effectively cancels it out all together. If everyone pays 10% in taxes, then no one pays 10%. For everyone who has business has to accomodate these 10% in the prices of the services or goods than he provides.


Namely, there's no difference: 1) sell a product for $100 and pay 0% of tax, or 2) sell it for $110 and pay 10% of tax? As long as everyone on Earth is taxed at minimum 10%, and, therefore, has no competitive advantage by paying less than 10%.


Right?

---

There may be 2nd and 3rd order consequences. But as for the 1st order ones, there's no difference.

Its like having a system where 3 out of 10 people must sit on a chair with dildo and you suggest that it wont be so bad at all if all 10 out of 10 people sit on a dildo. If everyone takes it up there -> it becomes new norm.

Sorry but Id prefer no such life.

 

[JamesDonkey]

Its like having a system where 3 out of 10 people must sit on a chair with dildo and you suggest that it wont be so bad at all if all 10 out of 10 people sit on a dildo. If everyone takes it up there -> it becomes new norm.

Sorry but Id prefer no such life.

False equivalence fallacy

 

[avalanche]

False equivalence fallacy

Willingly paying tax - its no better than sitting on a chair with dildo.

 

[JamesDonkey]

Willingly paying tax - its no better than sitting on a chair with dildo.

there's no world "willingly" in my post, nor is there anything that implies it.

 

[Martin Everson]

Namely, there's no difference: 1) sell a product for $100 and pay 0% of tax, or 2) sell it for $110 and pay 10% of tax? As long as everyone on Earth is taxed at minimum 10%, and, therefore, has no competitive advantage by paying less than 10%

If you follow this logic then why not have the tax rate at 90%?

 

[JamesDonkey]

If you follow this logic then why not have the tax rate at 90%?

My friend, what's your question precisely?

"Why not have..." --> I'm not the one who decides whether or not have 90% of tax world-wide.

 

[Martin Everson]

My friend, what's your question precisely?

You didn't understand basic English then?

Look what you said below. So if 10% and no one pays 10% then why not 90% and no one pays 90% . Completely daft argument from the outset which I pointed out with 90% point.

If everyone pays 10% in taxes, then no one pays 10%.

 

[JamesDonkey]

Your English - no, I don't.

You haven't explained anything. Nor have you asked a question. You've just "pointed out".

 

[NoKYC]

IMO, you're failing to see the precedent set by it. It's a minimum tax. So in places like the UAE it would be only 10% whereas a country like the US or Canada it could raise way more than the already 30% corporate tax.

Also, the 10% in the current economy is enough to send most into bankruptcy. Billion dollars corporations have enough but small and mid size businesses can't afford to raise their prices.

 

[troubled soul]

I believe in abolish all personal/business income tax. Only Service/VAT tax.
That would be more efficient. It make things simple. This "wealth tax", "Global minimum tax" all type of stuff. Government people creating circus.





some Caribbean country ,Monaco and Dubai are best example for this type of taxation
I create the thread for same topic in past.
You can check.

Income tax is new age things.
In past all government/monarchy or any social system works Service/Duty/VAT kind of tax.

https://www.offshorecorptalk.com/threads/why-all-government-in-the-world-abolish-the-income-tax-and-survive-on-the-vat-service-tax-or-only-transaction-tax.34522/?amp=1

Keep in Mind that Big tech with turnover over 1 billion which government are planning to taxed, they can make or break any country economy.
They are smarter than Government Officer. They are more powerful that so many country. They can make new rules in medium size country.

 

[Martin Everson]

I believe in abolish all personal/business income tax. Only Service/VAT tax.
That would be more efficient. It make things simple. This "wealth tax", "Global minimum tax" all type of stuff. Government people creating circus.

Totally agree. And I pointed out in your thread how things are done in my country and how they can be improved .

You haven't explained anything. Nor have you asked a question. You've just "pointed out".

 

[NoKYC]

I believe in abolish all personal/business income tax. Only Service/VAT tax.
That would be more efficient. It make things simple. This "wealth tax", "Global minimum tax" all type of stuff. Government people creating circus.

100% agreed. You use or buy something, you pay for said use.

Keep in Mind that Big tech with turnover over 1 billion which government are planning to taxed, they can make or break any country economy.
They are smarter than Government Officer. They are more powerful that so many country. They can make new rules in medium size country.

The problem is that big tech seems to be working with the government. Especially in the US. Very few players outside of the bubble in Silicon Valley

 

[Rzeznik]

The problem is that big tech seems to be working with the government.

Yea XD small countries started imposing "digital tax" like UK and bamm... lets go to US government make deal with it - lets make 15% minimum tax give it to US and show ..i.. to countries like UK We will pay that minimum in US. Some people were believing that is good and it will kick tech giants...

Mean time UK have to rollback their digital tax and no new tax as that can be implemented for 10 years . Who won ?

 

[JamesDonkey]

But hasn't almost anyone, if not everyone, noticied the 2nd part of this game? Which is: salaries and pricing of goods and services would also go up, and therefore will compensate for a increased tax, and in the same proportion so.

You paid 0% of tax? Now you have to pay 10%? Well, increase you prices by 10%. And so would do the employers, thus maintaining the purchasing power of people on the same level. Therefore, you won't have less customers, you'd have the same amount of them, because their salaries would've increased by the same 10%.

No?

 

[avalanche]

But hasn't almost anyone, if not everyone, noticied the 2nd part of this game? Which is: salaries and pricing of goods and services would also go up, and therefore will compensate for a increased tax, and in the same proportion so.

You paid 0% of tax? Now you have to pay 10%? Well, increase you prices by 10%. And so would do the employers, thus maintaining the purchasing power of people on the same level. Therefore, you won't have less customers, you'd have the same amount of them, because their salaries would've increased by the same 10%.

No?

No. Salaries stay the same. In Armenia for example gasoline prices went up but taxis still charge the same money.

 

[Martin Everson]

No?

No sadly.

 

[JamesDonkey]

No. Salaries stay the same. In Armenia for example gasoline prices went up but taxis still charge the same money.

Salary won't go up because in Armenia(!) they stay the same? So whatever happens in Armenia alone, is enough of proof of how salaries would behave world-wide?