Good point. From my perspective, the major problem with free trade is that it lets the billionaires move production offshore and avoid all taxes while hiding their obscene profits. (And they then import the products while laying-off US employees.)(And the guy who owned the factory, let's call him "Steve", made many billions offshore for which there is no US accounting at all.)
And it was a very cool factory - I had done automation projects, and some buddies of mine at the company were working on that project. As someone who had done robotic automation, it was truly amazing to watch and was probably the most state of the art at the time. We literally turned out the lights just to stand on the catwalk and watch the robots in the glow of the hundreds of LEDs on the electronics.
That's not free trades problem - that's this problem
Apple sells a million iPhones in Europe and now has a billion Euros in bank accounts in 23 countries. Which of the following statements is true:
Apple is a US company so USA should get the tax on that billion
Apple has the money in a German bank account so Germany gets to tax it first
Apple used sales people in Ireland to take the order on the phone, so Irish gov gets to tax it
Ten thousand iPhones were sold to Dutch citizens and shipped from France to NL. By a UK shipper. We all want a cut
It's a total fucking mess is what it is. In fact it reminds me of the BBC podcast Infinite Monkey Cage on race just now where the biologists just went "can we not use the word race, it is totally meaningless"
I suspect if you find a tax lawyer they have a similar view in "nation state" "soverignty" and "tax revenues"
I think the problem can be simplified. Apple and Steve hid the bulk of their wealth from all taxation (I have personal knowledge of this being true.) So figuring out what they are hiding and how they are hiding it is the first issue to solve. Once the numbers are clear, then it becomes possible to decide policy. The policy might be that if a company wants to sell in the US then it must employ in the US and pay taxes in the US or face sanctions (there are lots of ways to restrict sales and marketing of products. There are many channels and product lines.)
Comments
I think it's different that a) we (you?) can build a robot factory to make stuff and b) we let them use it as a tax dodge
Fixing the tax system is a different problem, but no less complex - but cool factory.
Good point. From my perspective, the major problem with free trade is that it lets the billionaires move production offshore and avoid all taxes while hiding their obscene profits. (And they then import the products while laying-off US employees.)(And the guy who owned the factory, let's call him "Steve", made many billions offshore for which there is no US accounting at all.)
And it was a very cool factory - I had done automation projects, and some buddies of mine at the company were working on that project. As someone who had done robotic automation, it was truly amazing to watch and was probably the most state of the art at the time. We literally turned out the lights just to stand on the catwalk and watch the robots in the glow of the hundreds of LEDs on the electronics.
That's not free trades problem - that's this problem
Apple sells a million iPhones in Europe and now has a billion Euros in bank accounts in 23 countries. Which of the following statements is true:
Apple is a US company so USA should get the tax on that billion
Apple has the money in a German bank account so Germany gets to tax it first
Apple used sales people in Ireland to take the order on the phone, so Irish gov gets to tax it
Ten thousand iPhones were sold to Dutch citizens and shipped from France to NL. By a UK shipper. We all want a cut
It's a total fucking mess is what it is. In fact it reminds me of the BBC podcast Infinite Monkey Cage on race just now where the biologists just went "can we not use the word race, it is totally meaningless"
I suspect if you find a tax lawyer they have a similar view in "nation state" "soverignty" and "tax revenues"
I think the problem can be simplified. Apple and Steve hid the bulk of their wealth from all taxation (I have personal knowledge of this being true.) So figuring out what they are hiding and how they are hiding it is the first issue to solve. Once the numbers are clear, then it becomes possible to decide policy. The policy might be that if a company wants to sell in the US then it must employ in the US and pay taxes in the US or face sanctions (there are lots of ways to restrict sales and marketing of products. There are many channels and product lines.)