Re:Upcoming price and tax changes for apps and in-app purchases
by YetAnotherNick on Tuesday September 20, 2022 @11:27AM
(#32913051)
The only aim we started was what will give small companies incentive, where I argued lowering tax is better for them.
If your only goal is to get short term public good, just ban all small companies, inceltivize government backed/owned monopoly and tax them heavily so that profit is just marginal. You would get lot of tax revenue in short term, but it will destroy economy in the long term. And it is not just as a theoretical example, there was an entire failed political movement for this.
Obviously like everything in life, there is a fine balance in tax rate and this knob has lot of consequence.
If your only goal is to get short term public good, just ban all small companies, inceltivize government backed/owned monopoly and tax them heavily so that profit is just marginal. You would get lot of tax revenue in short term, but it will destroy economy in the long term. And it is not just as a theoretical example, there was an entire failed political movement for this.
Obviously like everything in life, there is a fine balance in tax rate and this knob has lot of consequence.