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Re:40% of multinational profits are shifted to tax havens ea... by mcv on Tuesday November 19, 2019 @09:03AM (#21572869)
I think paying taxes to the society you're profiting from is entirely reasonable. The problem is that corporations are free to profit in one country but declare those profits in another country. Corporations can do that but people can't.

(What's even worse, US citizens (US "persons" even, you don't have to be a citizen for this) that live and work abroad and have nothing to do with the US, still have to pay their taxes there. And also in the country where they actually work and live. People get treated the exact opposite of corporations in this way. Though the US is the only country in the world that does this. Perhaps they're the only one with the power to enforce this world wide; any bank that wants to do business with the US has to report on these "US persons" and play by US rules.)

Re:40% of multinational profits are shifted to tax havens ea... by jfim on Tuesday November 19, 2019 @09:12AM (#21572931)
Another big issue with US taxes is that tax dollars aren't well spent.

I'd be happy to pay the amount of taxes I'm currently paying in California if tax dollars were used well, but as it stands the public schools are underfunded, the highways are full of litter on the side, higher education isn't free, healthcare isn't universal, social security is underfunded, public transportation is dysfunctional, and so on.

Re:40% of multinational profits are shifted to tax havens ea... by mywittyname on Tuesday November 19, 2019 @09:25AM (#21573061)
When it comes to international corporate interest, American tax dollars are extremely well spent. The US State Department, Military, and to a degree, Intelligence Agencies do everything they can to compel favorable treatment for large American companies from every other country.

I guess it's possible that large companies have outgrown the need for US Government support internationally and figure its cheaper and more effective to lobby the leadership of countries directly. The problem is that this approach opens up Western nations to a new form of neo-colonialism. When Western "democracies" are controlled by large corporations, the door is open for the state-owned companies of China or Saudi Arabia to acquire these companies, and thus, their influence over Western nations.

Re:40% of multinational profits are shifted to tax havens ea... by mcv on Tuesday November 19, 2019 @10:27AM (#21573819)
> "When it comes to international corporate interest, American tax dollars are extremely well spent."

That just makes it worse: people pay taxes but don't get value for their money, while corporations pay no taxes but get lots of value for other people's money.

Re:40% of multinational profits are shifted to tax havens ea... by buboard on Tuesday November 19, 2019 @11:02AM (#21574359)
This is true, US isnt so bad at public spending management. Still, that doesn’t make taxes voluntary
Re:40% of multinational profits are shifted to tax havens ea... by mcv on Tuesday November 19, 2019 @09:17AM (#21572974)
It's a different issue, but yes, I can totally see how people would be less happy about paying taxes when those taxes are wasted on stupid crap and not used to improve the situation of them and their fellow citizens.
Re:40% of multinational profits are shifted to tax havens ea... by sgc on Tuesday November 19, 2019 @09:36AM (#21573167)
It's not totally separate. Paying taxes to fund orphanages, or to fund weapons of mass destruction, or actual wars that one considers to be intrinsically immoral, are radically different acts - and the moral act of payment is affected. To fund an orphanage might be considered an obligation by many, while to fund an immoral war might be considered a form of slavery and the funds taken under duress.

In other words, the morality of paying taxes is directly dependent on the legitimacy of the government demanding payment. And that legitimacy in part derives from their very actions, for which in an ideal wold they would be held accountable.

Re:40% of multinational profits are shifted to tax havens ea... by chrisdhoover on Tuesday November 19, 2019 @10:12AM (#21573593)
California has high pension obligations that will only make the problem worse. The pension recipients refuse to discuss the matter. They wont even let grandfathered changes. Fees and taxes will continue to increase and services will be cut to pay pensions.
Re:40% of multinational profits are shifted to tax havens ea... by sokoloff on Tuesday November 19, 2019 @10:45AM (#21574079)
If you had a contract with the state to provide you money in retirement based on a career of working for the state, how much flexibility would you personally have on the state unilaterally changing the terms of your source of income?
Re:40% of multinational profits are shifted to tax havens ea... by koolba on Tuesday November 19, 2019 @09:10AM (#21572921)
> What's even worse, US citizens (US "persons" even, you don't have to be a citizen for this) that live and work abroad and have nothing to do with the US, still have to pay their taxes there.

That’s the price you pay to have the most powerful country in the world as a destination to which you can always retreat.

Re:40% of multinational profits are shifted to tax havens ea... by sgc on Tuesday November 19, 2019 @09:28AM (#21573079)
We are aware that is the price you have to pay. However "The United States is one of just two countries (the other being the African nation of Eritrea) that taxes individuals’ based on their citizenship".[1] That should at least give you pause to ask why, whether it is fair, and most importantly, if there is not a better solution to whatever problem this policy attempts to solve.

[1] https://taxfoundation.org/how-countries-define-their-income-...

Re:40% of multinational profits are shifted to tax havens ea... by lovich on Tuesday November 19, 2019 @09:26AM (#21573063)
If that was a justification then why aren't corporation's paying that price?
Re:40% of multinational profits are shifted to tax havens ea... by AnIdiotOnTheNet on Tuesday November 19, 2019 @09:32AM (#21573112)
It is also worth noting that expats can exclude something like $100k from taxes with the Foreign Earned Income Exclusion. My understanding is that relatively few US expats actually pay anything.
Re:40% of multinational profits are shifted to tax havens ea... by mcv on Tuesday November 19, 2019 @10:29AM (#21573847)
From what I understand, they usually don't have to pay anything as long as they do pay some reasonable amount of taxes in the country where they live, but they still have to file taxes in the US, which, from what I understand, is quite a horrific process.
Re:40% of multinational profits are shifted to tax havens ea... by afthonos on Tuesday November 19, 2019 @09:25AM (#21573057)
Doesn’t change the fact that US corporations aren’t so bound.
Re:40% of multinational profits are shifted to tax havens ea... by bluecalm on Tuesday November 19, 2019 @09:19AM (#21572992)
Please don't confuse income taxes with taxes on profit. Income tax is like a tax on revenue - you pay it where you get it, you can't deduct costs. You can tax corporations on revenue or you could tax consumption (by VAT or sells tax) and that wouldn't be evaded either. The problem is with taxing profits and elusive concept of "profits in specific market". The concept doesn't really makes much sense though.

It also isn't a just concept if you think about it. Why should France (for example) get more tax just because Ireland made it possible to produce things cheaper? If they feel you should pay for access to the market tax that. It's really is not your business how much I spend in my country to produce goods I sell in yours. Trying to police that across borders, varying accounting regulations, labor laws etc. is just insanity.

Re:40% of multinational profits are shifted to tax havens ea... by mcv on Tuesday November 19, 2019 @10:25AM (#21573801)
> "It's really is not your business how much I spend in my country to produce goods I sell in yours."

That's exactly my point: you tax the economic activity only in your country: the revenue minus the profits in your country. What the company does in a different country is irrelevant to this.

Note: this is my tax proposal. Not how I claim things currently work, but what I think they should be changed to.

Although on a different level, I think what happens across borders absolutely does matter: I think countries should not import products created through slavery, child labour or other forms of oppression. Companies and countries should take more responsibility for the entire supply chain and not just the bits inside their own border.

Re:40% of multinational profits are shifted to tax havens ea... by SolaceQuantum on Tuesday November 19, 2019 @08:56AM (#21572793)
Honestly, I'm down for paying taxes. It pays for my lifestyle and is propostional to my lifestyle. If I own land, that land is only valuable due to the society that land exists in. It's protected, and safe, due to public services like roads, which law enforcement, fire control folks, postal service, and ambulances drive upon. I've earned my income from a lifetime of education, starting from my public school kindergarden all the way to me state university attendance, which in of itself is only useful to attend because there are bright minds teaching what they research via government grants.

All of that costs money, and paying taxes is more or less funding my lifestyle as it is now. If you want to not pay taxes, then stop paying taxes and give up everything you purchase with them. Go subsistence farm in the woods or something, or deal with bartering instead of money (which itself is only useful because there is some regulation to keep it useful).

Re:40% of multinational profits are shifted to tax havens ea... by ne0flex on Tuesday November 19, 2019 @09:12AM (#21572938)
I think most people would be down for paying taxes, however their main gripe, in my opinion, is that the quality of services (infrastructure, tax dollars being used for NSA spying on citizens, etc.) we're getting back for our tax dollars is dropping while taxes increase.
Re:40% of multinational profits are shifted to tax havens ea... by SolaceQuantum on Tuesday November 19, 2019 @09:48AM (#21573300)
Yes, I agree. We should vote appropirately, organize appropriately, and fully fund the IRS to be able to go after people who aren't paying their fair share in society.
Re:40% of multinational profits are shifted to tax havens ea... by moccachino on Tuesday November 19, 2019 @09:29AM (#21573087)
Taxes on regular people increases and the quality of services they provide decreases, precisely because of the tax-evading [0] behavior of the multinational corporations.

[0]: If you feel the need to point out the difference between tax-avoidance and tax-evasion then please watch this first: https://www.youtube.com/watch?v=m2q-Csk-ktc

Re:40% of multinational profits are shifted to tax havens ea... by cascom on Tuesday November 19, 2019 @09:10AM (#21572922)
I suspect few people here think they should pay no tax, however I’m quite sure that most would disagree about what the “right” amount would/should be. Furthermore, this is exacerbated by the quality and quantity of public goods different people use (e.g. there are plenty of people that have never set foot in any type of public school/university)
Re:40% of multinational profits are shifted to tax havens ea... by SolaceQuantum on Tuesday November 19, 2019 @09:53AM (#21573367)
"however I’m quite sure that most would disagree about what the “right” amount would/should be."

I currently spend a little over 30% of my income as the sticker price to living in a first world country. Compared to the price of renting an apartment in my city, I think this is a steal.

People who never set foot in any type of public school or university benefit from everyone else being educated, because everyone else designs their clothes, their cars, their planes, their buildings, roads, computing devices, etc.

No one is self sufficient in the society I live in. It's totally possible to go and be self sufficient. This reduces your income so you don't pay taxes, since you're not interacting with government-protected, government-manipulated currency. Seems reasonable to me.

Re:40% of multinational profits are shifted to tax havens ea... by cascom on Tuesday November 19, 2019 @10:47AM (#21574113)
I'm glad you feel like you are a net beneficiary - but my comment really boils down to "reasonable people can disagree" and "not everyone has the same experience"
Re:40% of multinational profits are shifted to tax havens ea... by appleiigs on Tuesday November 19, 2019 @09:48AM (#21573304)
A consumption tax (a tax on sales) is proportional to your lifestyle. If someone chooses to buy a gas guzzler v8, they should pay taxes on the gallons they burn to pay for roads and emissions.

Consumption tax is also easier to be set to a geographic location, and harder to shift to different tax jurisdiction.

Harder to play games in comparison to an income tax.

But nobody wants it. Very unpopular in a vote because, people rather have someone else pay such as rich people and corporations.

Re:40% of multinational profits are shifted to tax havens ea... by jmcqk6 on Tuesday November 19, 2019 @10:35AM (#21573939)
Consumption taxes are also regressive in that in the lower your income, the harder those taxes become to pay. I would prefer a tax scheme in which you're ability to pay the tax is proportional to the taxes you owe.
Re:40% of multinational profits are shifted to tax havens ea... by appleiigs on Tuesday November 19, 2019 @11:09AM (#21574475)
It's not regressive. It's a flat tax, everyone pays the flat rate. Feels like spin when you say regressive.
Re:40% of multinational profits are shifted to tax havens ea... by zerocrates on Tuesday November 19, 2019 @01:02PM (#21576017)
The reason people call a flat consumption tax regressive is that poorer people, even though they're often buying cheaper things, generally spend a much larger proportion of their income on "consumption."
Re:40% of multinational profits are shifted to tax havens ea... by snsr on Tuesday November 19, 2019 @10:11AM (#21573583)
Consumption taxes are regressive, serving to further exacerbate income inequality.
Re:40% of multinational profits are shifted to tax havens ea... by appleiigs on Tuesday November 19, 2019 @11:14AM (#21574529)
It's not regressive. It's flat.
Re:40% of multinational profits are shifted to tax havens ea... by khyryk on Tuesday November 19, 2019 @10:20AM (#21573713)
Rich people rarely buy stuff in proportion to their greater income (earning 100x more but not buying cars worth 100x more, etc). This would mainly affect the not-so-rich people, who, given fixed purchase budgets, would probably respond by consuming less, which is likely to hurt businesses with lower demand for just about any product.
Re:40% of multinational profits are shifted to tax havens ea... by appleiigs on Tuesday November 19, 2019 @11:16AM (#21574575)
> This would mainly affect the not-so-rich people, who, given fixed purchase budgets,

Certain items can be excempt from sales tax, such as groceries.

> Likely to hurt businesses

Since when is the HN crowd worried about hurting businesses. Most people here want higher taxes for corporations.

Re:40% of multinational profits are shifted to tax havens ea... by exabrial on Tuesday November 19, 2019 @10:58PM (#21580972)
That's fine if you want to pay them. But you should not and cannot ethically force others to consent to pay them.
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Re:40% of multinational profits are shifted to tax havens ea... by mcv on Tuesday November 19, 2019 @09:08AM (#21572906)
What's hypocritical about this? I suppose if you honestly believed SolaceQuantum was wrong[0], you might indeed believe they were either deluded or a liar, but even then, what's hypocritical about it?

[0] They're not wrong of course; everything claimed in that comment is entirely (or 'mostly', at least) correct. I'd love to see you try to refute any of it.

Re:40% of multinational profits are shifted to tax havens ea... by Cthulhu_ on Tuesday November 19, 2019 @09:40AM (#21573219)
I've benefited greatly from the system, as did my siblings and parents, so I'm more than happy to pay taxes. Taxes:

- Make sure the area I live in is clean, safe, accessible - Paid for my college, allowing me and my siblings to end up with a higher education and (in my case) earning more than my parents did. Social mobility, something my parents could not have afforded on their own. - Paid my dad when he lost his job - Paid my brother who never managed to land a job

And of course if it wasn't for taxes / a functioning government, half my country would be underwater.

Re:40% of multinational profits are shifted to tax havens ea... by thatfrenchguy on Tuesday November 19, 2019 @09:23AM (#21573033)
I don’t think you using roads or any public service is honorable if you don’t want to contribute. Markets and wealth don’t exist without governments to enforce them.
Re:40% of multinational profits are shifted to tax havens ea... by WilliamEdward on Tuesday November 19, 2019 @09:13AM (#21572944)
You are benefiting from the fruits of society and in some way should give back. Taxes are maybe not the best system, but not paying them is not 'honorable'
Re:40% of multinational profits are shifted to tax havens ea... by authoritarian on Tuesday November 19, 2019 @10:32AM (#21573883)
I don't necessarily disagree with your statement, but I also don't feel particularly honorable funding invasions of foreign countries, killing civilians with drone strikes, developing and producing massive amounts of weaponry, spying on American citizens, and other unsavory business the US is involved with
Re:40% of multinational profits are shifted to tax havens ea... by exabrial on Tuesday November 19, 2019 @11:02PM (#21580989)
I'm a little stunned by the HN comments.

Taxes are non-consensual. I think that is all that needs to be said. If you want to pay them, that's your perogative but forcing anyone to do something under threat of jail or death cannot be justified.

Re:40% of multinational profits are shifted to tax havens ea... by tw04 on Tuesday November 19, 2019 @09:12AM (#21572933)
Surely you have an alternative method of funding government then?
Re:40% of multinational profits are shifted to tax havens ea... by apta on Tuesday November 19, 2019 @10:31PM (#21580880)
There are historic (and present) examples of governments that do not tax their citizens and residents. The government should be engaging in business/trade/stock market/etc. and not steal from its citizens.
Re:40% of multinational profits are shifted to tax havens ea... by SmartWa on Tuesday November 19, 2019 @10:54AM (#21574214)
Just an honest question: How do you think should we finance our society?
Re:40% of multinational profits are shifted to tax havens ea... by exabrial on Wednesday November 20, 2019 @09:07AM (#21583976)
I think the correct answer is whomever will willingly pay for it. If we look at taxes through a framework of consent, I don't see another option.