I know that the following is not about flat taxes, but it is connected with it. So I took the liberty to post it here. In the UK they will start to tax the multinationals who try to avoid taxes with smart constructions. They will tax them at 25% for the profits that are transferred by smart constructions to low tax countries. More European countries are studying now this option. Instead of discussing flat tax it is maybe more logic to discuss a reasonable tax contribution from everybody. In fact the multinationals have already a flat tax. The rate is 0%. Apple has billions outside of the US to avoid taxation, but at the same time they loan money to pay dividends to shareholders, Starbucks uses patents to move billion to the Netherland where they are taxed at almost zero %. Same story for almost every multinational. Starbuck got in problems a few months ago when British customers started to boycot them, Starbucks agreed quickly to pay taxes in the UK. The alternative was to lose huge amount of customers which means lose huge amounts of profits.
You've put your finger on a problem shared by industrialized countries since the advent of a global economy. The problem is non-uniform tax structure from one country to the next. This invites multinational corporations to shop for the most favorable tax treatment. Were all industrialized countries to get together and adopt uniform tax structures the problem would disappear, but it seems that comprehensive agreement among countries, while not impossible, is highly unlikely. The problems to be encountered in negotiating uniform tax structure via tax treaties, may prove insurmountable. Tax codes aren't used solely for raising revenue. They are also used to favor certain segments of an economy and as a means of delivering political favors. What are the chances these latter interests would align among countries? In lieu of a comprehensive agreement, it seems likely that tax shopping of multinationals will be addressed piecemeal via various punitive measures, such as the UK measure you mention, or wholesale giveaways such as tax free repatriation of profits. But won't there always be a rogue country or two? Will this lead to tax wars?
I think this tax war is already operational. It is completely legal. Countries can give exceptional conditions legally. But only for the happy few. http://www.icij.org/project/luxembourg-leaks/day-fiscal-paradise-chasing-letterbox-leads-luxembourg But also The Netherlands is active in this war. From the Fortune 500 companies, 48% have an office there and transfer 127 billion dollars throught this sytem to evade taxes. Belgium is also active and gives very favourable taxe rates for multinationals. All European countries complain about this practice, but in reality they all do the same. Help to pay in other countries but take a small commission. Apple and Dell use Ireland to evade US taxes. Price Waterhouses helps Pepsi, Ikea, Abbott. Some American companies that use Luxembourg for evading taxes: Amazon, Heinz, Fedex.
evade? oh, is that what it is now, if you look for a better deal you're an "evader" and your solution is for the most powerful governments in the world to gang up? Make life miserable for anybody that "doesn't do it our way." Doesn't anybody care about freedom anymore? Or have we become so greedy we just want your last dime that we think belongs to us.
It depends what you mean with freedom. If I want to kill somebody and police is stopping me, does this mean that i have no freedom? If I want to rob a bank and police is stopping me, does this mean that i have no freedom? If i don't want to pay taxes but am forced to pay, does this mean that i have no freedom? I have my own business and try to pay as less taxes as possible. But if everybody would be fair taxpayers, I would pay a fair part of taxes without any problem. But I don't want to pay taxes to subsidize lazy people that don't want to work, or for junkies or for overpaid politicians.
I hear ya brother, I am more than willing to pay my fair share of taxes to keep this great country going. And just for the record, junkies shouldn't be mentioned in the same breath as overpaid politicians. At least junkies are suffering and know they need to change. But this is the USA, not some fly by night European experiment you live in. If you want some money out of my paycheck, you need to fight for it, and you better have a good reason to spend it. now if I don't want to pay it, you have labeled me an "evader" What's next? The EMPIRE STRIKES BACK AGAINST THE EVADERS! Go learn something about freedom and get back to me I don't really want to listen to your loyalist arguments
I understand now why people put you on ignore. You have huge mental problems. Don't want to spent more time on people like you.
better to be known by how many ignore you than how many like you it aint easy fighting for freedom nobody seems to care about it anymore except me but I know there are many others who love it (and when you learn English, that would be "spend" not "spent")
Buffett's secretary Bosanek pays a tax rate of 35.8 percent of income, while Buffett pays a rate at 17.4 percent on profit. http://news.yahoo.com/warren-buffett-secretary-talk-taxes-221442297--abc-news.html You're paying Income tax on your salary, not savings. Tell Govt to impose tax on Company revenues, not profits. http://wh.gov/iCfVS
oh here we go again, my company should never be taxed, who are they paying income to? cubicles and computers?