Re:Why does every company now want to be a platform?
by qeternity on Tuesday September 28, 2021 @03:11AM
(#28680121)
No, again, this is not economic rents. Income !== wealth. And just because they pay no taxes in Europe doesn’t mean there is no net wealth creation, even in Europe.
Just because rent seeking behavior can result in lost government revenue doesn’t mean that any loss of government revenue is rent seeking behavior. Tax evasion is not rent seeking.
But again, we are so far off the mark of what an actual economic rent is. It’s a topic that requires reading beyond a wiki article, and please stop trying to just find language that supports your existing, misinformed conclusion.
Any multinational that's not trying to siphon profits to offshore is not going to last very long. All of them siphon wealth offshore, away from where it would be rightfully taxed.
Example: "In 2020, Amazon earned 44 billion euros in Europe, but reported paying no taxes in Luxembourg."
From your wiki article: >"Rent-seeking results in reduced economic efficiency through misallocation of resources, reduced wealth-creation, **lost government revenue**, heightened income inequality,[2] and potential national decline."
>"lost government revenue"
Big Tech doesn't simply capture some tiny regulator. They capture (jointly with other multinationals) entire countries, like Ireland and Luxembourg.