Tech giants face 2% UK digital services tax

Re:Tech giants face 2% UK digital services tax by repsilat on Monday October 29, 2018 @03:17PM (#18330388)

A level playing field makes sense, and domestic companies are at a disadvantage if their local profits are taxed while foreign companies' "local profits" are taxed offshore at a lower rate.

That said, this doesn't level the playing field, it tips it towards local companies. The tax on business revenues should apply to domestic companies as well, and it should apply to businesses of all sizes. If it has to be netted against taxes on earnings ("tax is the larger of...") to make it not punish local businesses then they should do that.

Anything else harms the consumer by distorting the market.

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Re:Tech giants face 2% UK digital services tax by philjohn on Monday October 29, 2018 @06:52PM (#18332376)

2% does not tip it, it's actually a pretty low, but still sane, figure IMHO.

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Re:Tech giants face 2% UK digital services tax by nurino on Monday October 29, 2018 @03:40PM (#18330607)

There's absolutely nothing wrong with a government tipping the playing field towards local companies.

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Re:Tech giants face 2% UK digital services tax by mr_toad on Monday October 29, 2018 @04:10PM (#18330897)

There’s totally something wrong with favouring local businesses owners at the expense of local consumers. The benefits accrue mostly to people with incomes far in excess of the average.

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Re:Tech giants face 2% UK digital services tax by djrogers on Monday October 29, 2018 @05:16PM (#18331573)

Local business owners hire local employees.

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Re:Tech giants face 2% UK digital services tax by module0000 on Monday October 29, 2018 @04:49PM (#18331281)

Yes there is, especially if it results in the consumer paying more for a product. That's the government taking (additional) money away from you, and handing it to a local company.

If that doesn't make sense, an example could help when you want to buy a hypothetical WidgetBox.

Amazon WidgetBox: $100.00

Local WidgetBox: $102.00

After the added tax on Amazon, now you have no choice but to pay $102.00 for something you could previously pay $100.00 for. In business speak, it's call "screwing you" - in the article it's dressed up as "helping local businesses (screw you)".

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Re:Tech giants face 2% UK digital services tax by mattmanser on Monday October 29, 2018 @05:50PM (#18331850)

Apart from the local company's payroll makes up $50 of that cost, of which $20 goes to taxes, so society is still up $18.

It's far more complicated than you make it seem.

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Re:Tech giants face 2% UK digital services tax by ionised on Tuesday October 30, 2018 @07:45AM (#18335597)

> Yes there is, especially if it results in the consumer paying more for a product.

I don't see why ever-decreasing prices seems to be your metric for good here.

I voluntarily pay more for certain things because it is a more ethical choice in those cases.

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