We already have VAT or sales tax.

> Or stop taxing "profits"

By "profits" I meant to stop business being able to claim expenses and reduce the tax. We could replace complex taxation scheme only-on-positive-profit with a simple 1% (for example) tax on all transfers, on the total amount, no matter what is the purpose of the money transfer

That incentivizes the creation of vertically-integrated conglomerates over small companies, in order to reduce the number of transactions; is that what you want to foster?

You need to take into account all the simplification it would imply in tax collection / paperwork / regulations etc. The cost of our current ways of taxing wealth and profits is huge

In the US, the IRS collected $3.33 trillion in revenue in 2018, with a total budget of 11.5 billion (2017). Thats 0.3453%, or 35c per $100 of tax revenue. Fairly minor in the scheme of things.

Monetary costs are a small subset of general costs (and the cheapest ones, easier to know and aggregate).

that's only one side of the ledger (collection). Now calculate the costs to the taxpayers (people and corps).

The trouble with that is it will penalise low margin businesses, Apple could easily afford it on their 30% margin but a budget PC maker with a 3% margin would struggle.

Small businesses are already penalized by our current laws and ways of taxing profits. I believe the alternative I am proposing (that will never come to reality) is easier for everyone

Sure, it's easier, but it also means you'll just have a bunch of giant vertically-integrated monopolies. Easier, sure, but I don't see how that's better.

It's better because it's cheaper for everyone to do business. More competition, everything gets cheaper.

You mean like VAT/GST.

Not like GST : it would be on all transactions in the legal currency, including B2B. There wouldn't be an artificial difference between "businesses" and "customers"

Not like VAT : VAT is way more complex and expenses are deducted at each step

So cheaper for large integrated companies? Sounds like it'd really hurt competitors starting up.

It would kill any business with a long supply chain, the only manufacturers left would be the ones where ore arrives at one end of the factory and finished goods come out of the other end.

It would be cheaper for everyone because of tax simplifications. Current system is already unfair to a lot of group of people, including small businesses. And large company also have money transfers so I am not sure to understand the example unless we go into the specifics a little bit more