Re:IBM patent trolling patent application
by eru on Wednesday July 13, 2011 @11:07PM
(#2761592)
> Why doesn't a revenue tax make sense?
Suppose there are two companies. The first company buys resource A for 100$ to produce B. The second company buys B for 110$ and produces C, which it sells to the public for 120$. A merger of both companies would approximately half their total revenue, but wouldn't change their total profit.
We don't want the tax system to determine the optimal size of a company.
Suppose there are two companies. The first company buys resource A for 100$ to produce B. The second company buys B for 110$ and produces C, which it sells to the public for 120$. A merger of both companies would approximately half their total revenue, but wouldn't change their total profit.
We don't want the tax system to determine the optimal size of a company.