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?

---

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

Last edited: Oct 15, 2021

 

[Rzeznik]

JamesDonkey said:
Right?
Click to expand...

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]

Rzeznik said:
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.
Click to expand...

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]

JamesDonkey said:
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.
Click to expand...

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]

avalanche said:
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.
Click to expand...

False equivalence fallacy

Last edited: Oct 16, 2021

 

[avalanche]

JamesDonkey said:
False equivalence fallacy
Click to expand...

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

 

[JamesDonkey]

avalanche said:
Willingly paying tax - its no better than sitting on a chair with dildo.
Click to expand...

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

 

[Martin Everson]

JamesDonkey said:
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%
Click to expand...

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

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[JamesDonkey]

Martin Everson said:
If you follow this logic then why not have the tax rate at 90%?
Click to expand...

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]

JamesDonkey said:
My friend, what's your question precisely?
Click to expand...

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.

JamesDonkey said:
If everyone pays 10% in taxes, then no one pays 10%.
Click to expand...

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[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/th...vice-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.

Last edited: Oct 19, 2021

 

[Martin Everson]

azb1 said:
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.
Click to expand...

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

JamesDonkey said:
You haven't explained anything. Nor have you asked a question. You've just "pointed out".
Click to expand...

🙄

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[NoKYC]

azb1 said:
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.
Click to expand...

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

azb1 said:
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.
Click to expand...

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]

NoKYC said:
The problem is that big tech seems to be working with the government.
Click to expand...

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]

JamesDonkey said:
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?
Click to expand...

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

 

[Martin Everson]

JamesDonkey said:
No?
Click to expand...

No sadly.

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[JamesDonkey]

avalanche said:
No. Salaries stay the same. In Armenia for example gasoline prices went up but taxis still charge the same money.
Click to expand...

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?