Re:Technology Change Not the Culprit in Wages Falling Behind...
by AnthonyMouse on Wednesday February 21, 2018 @11:47PM
(#16435212)
Talking about "effective tax rate" with regards to multinational tax-avoiding corporations is basically gibberish.
You can't use taxes paid as a percentage of revenue because it's meaningless. A retailer with a 3% profit margin would have a ~1% effective tax rate because 97% of their revenue goes to tax-deductible expenses.
But if you use taxes paid as a percentage of profit then you're not counting any of the tax avoidance, because the way international tax avoidance works is to shift profits to sister companies in other countries instead of the one with a high nominal tax rate.
You can't use taxes paid as a percentage of revenue because it's meaningless. A retailer with a 3% profit margin would have a ~1% effective tax rate because 97% of their revenue goes to tax-deductible expenses.
But if you use taxes paid as a percentage of profit then you're not counting any of the tax avoidance, because the way international tax avoidance works is to shift profits to sister companies in other countries instead of the one with a high nominal tax rate.