News for hackers. Stuff that matters.

A comment on Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent. Parent comment

Re:Netflix Made Record Profits in 2020, Paid a Tax Rate of L... by goatinaboat on Tuesday April 06, 2021 @02:35AM (#26708675)
You just reinvented VAT.

VAT is passed “through” a company, I mean for this to be charged to the company on what is normally considered income. Essentially, since corporations are supposedly people, they can pay income tax like people.

[ Parent | on HN ]
Re:Netflix Made Record Profits in 2020, Paid a Tax Rate of L... by gsnedders on Tuesday April 06, 2021 @11:02AM (#26712624)
So you're just replacing a profit tax with a revenue tax? For low-margin industries that'll have a significant impact, and grocery stores for example will be heavily hit by it (Tesco, for example, made £1.3B pre-tax profit on £64.8B revenue, which is roughly expected for the industry), with consequential rises in the prices of food.

A revenue tax disproportionately hits low-margin industries, which typically account for a disproportionate amount of expenditure of low-income households, which is likely a bad thing.

[ Parent | on HN ]