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A comment on G7: Rich nations back deal to tax multinationals. Parent comment

Re:G7: Rich nations back deal to tax multinationals by sokoloff on Saturday June 05, 2021 @10:21AM (#27405277)
Taxes on revenue create strong incentives for vertical integration and consolidation (because there are fewer links in the chain to be taxed).

If one entity owns the farm, the food distribution, and the grocery store, they have one revenue transaction to be taxed. A small farmer selling their eggs to a distributor who sells them to the grocer who sells them to you is taxed three times on what amounts to same activity.

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Re:G7: Rich nations back deal to tax multinationals by kaveh_h on Saturday June 05, 2021 @11:38AM (#27405917)
This is perhaps true of revenue tax. But for VAT You can deduct VAT of sales from VAT of purchases.
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Re:G7: Rich nations back deal to tax multinationals by sokoloff on Saturday June 05, 2021 @06:55PM (#27409104)
Indeed. Which is why VAT is a much better and more common structure of taxation than a tax on all revenue.
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