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A comment on IT is the cause of rising income and wealth inequality since the 1970s [pdf]. Parent comment

Re:IT is the cause of rising income and wealth inequality si... by aembleton on Monday August 07, 2017 @05:34AM (#14946295)
I'd like to see corporation tax replaced with a Border Adjustment Tax [1]. The tax would be paid on the result of USA Revenue - USA Costs. If you were to move intellectual property offshore and licence it from that subsidiary then that would not be a USA Cost and therefore would not be deductible. If you brought it back onshore then it would only be deductible if there was a cost. If you moved into another company within the US, then it would be a cost but that company would then need to pay tax on that revenue minus the minimal costs that it would incur to store IP.

1. http://www.investopedia.com/terms/b/border-adjustment-tax.as...

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Re:IT is the cause of rising income and wealth inequality si... by hdhzy on Monday August 07, 2017 @06:58AM (#14946580)
Okay sounds good in this case but what if a company really needs to buy a licence from an offshore company, let's say a critical technical part in your manufacturing process. Then you can't deduct it but in reality these are your costs.

Remember that the problem is caused by companies abusing the system but the rules are there because honest companies need to operate.

The real solution would fix the issue while allowing honest companies to work just like they did before. The problem is that software companies are composed almost purely out of intellectual property, that is intangible and hard to really track.

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Re:IT is the cause of rising income and wealth inequality si... by AnthonyMouse on Monday August 07, 2017 @10:01AM (#14947483)
> Then you can't deduct it but in reality these are your costs.

The tax wasn't collected to begin with. The reason you can deduct it when buying from a local company is that they paid it. If you buy from a foreign company that hasn't paid it then you have to because they didn't. It isn't an unfairness, it's the reinstitution of fairness.

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Re:IT is the cause of rising income and wealth inequality si... by aembleton on Monday August 07, 2017 @09:04AM (#14947181)
Then they would need to raise your prices to afford the tax, or select a more expensive locally made alternative.
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Re:IT is the cause of rising income and wealth inequality si... by m12k on Monday August 07, 2017 @07:40AM (#14946742)
Hadn't heard of that before. Personally, I'm rooting for https://en.wikipedia.org/wiki/Formulary_apportionment
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Re:IT is the cause of rising income and wealth inequality si... by AnthonyMouse on Monday August 07, 2017 @09:57AM (#14947453)
Anything like that which results in a huge financial incentive for outsourcing is not going to be popular.
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