The most obvious way to fix it would be to tax revenue...
What?
So if I sell 1 million widgets for $1M with a margin of 1%, earning me $10k, I pay the same tax as someone who sells 1 widget for $1M at a margin of 50% who earns $500k?
So if the tax rate is 1% or higher, I make no money, most likely end up in huge debt?
This is your 'obvious' solution?
Bernie, is that you?
If two companies are each producing a million widgets, then they are using similar amounts of public services and infrastructure.
But they're not. One company is producing 1M widgets, the other produced just one, yet you want them to pay the exact same amount of tax.
As an example a company that produces a million $1 Vaccines and makes 1% margin makes $10k. If your revenue tax rate was only 1%, they'd make zero dollars and go out of business.
Now let's say a luxury yacht maker sells his million dollar yachts at $500k profit, and only has to pay $10k in tax and laughs all the way to the bank
Sorry, but that is really dumb...
Really? (Score:5, Insightful)
"lawmaker claimed that it and other large corporations 'exploit loopholes"
Loopholes that said 'lawmakers' left in the tax legislation either by accident (incompetent) or by design (corrupt).
Just change the laws to close the loopholes but don't ask people to pay more than YOUR laws expect them to.
Re: (Score:2, Interesting)
In some cases, sure, but offshoring profits to tax havens isn't a legislative loophole, but an accounting trick that multinational companies can use.
Re: (Score:4, Informative)
offshoring profits to tax havens isn't a legislative loophole
Yes it is.
The tax code is written to allow the offshoring of profits.
The most obvious way to fix it would be to tax revenue, payroll, or dividends rather than profits.
Re: (Score:1)
The most obvious way to fix it would be to tax revenue...
What?
So if I sell 1 million widgets for $1M with a margin of 1%, earning me $10k, I pay the same tax as someone who sells 1 widget for $1M at a margin of 50% who earns $500k?
So if the tax rate is 1% or higher, I make no money, most likely end up in huge debt?
This is your 'obvious' solution? Bernie, is that you?
Re: (Score:2)
If two companies are each producing a million widgets, then they are using similar amounts of public services and infrastructure.
So they should pay about the same tax.
Why should the more efficient company pay 50 times more?
Re:Really? (Score:1)
If two companies are each producing a million widgets, then they are using similar amounts of public services and infrastructure.
But they're not. One company is producing 1M widgets, the other produced just one, yet you want them to pay the exact same amount of tax.
As an example a company that produces a million $1 Vaccines and makes 1% margin makes $10k. If your revenue tax rate was only 1%, they'd make zero dollars and go out of business.
Now let's say a luxury yacht maker sells his million dollar yachts at $500k profit, and only has to pay $10k in tax and laughs all the way to the bank
Sorry, but that is really dumb...