> For the most part, personal income is taxed on gross and business income is taxed on net
replyThis bothers me a lot.
So basically a wealthy billionaire can take one company that makes profits and acquire a large loss making company that he also owns and Viola suddenly the profit making company doesn't need to pay as much in taxes anymore.
Or Google takes out huge ads on its own properties but it doesn't have to pay anyone and therefore doesn't have to pay any sales tax on those ads.
It feels like we are structurally encouraging vertical integration and bigger businesses.
We need to have some kind of alternative minimum global tax for companies based on gross receipts rather than net.
Taxing on net specifically reduces integration. Imagine if every business was taxed on 30% if their revenue. You would buy an iPhone for $1000 including $300 tax, and $700 to Apple. Apple pays $700 to Foxconn, who pays $210 tax and gets to use $490 to make the phone. But now imagine Apple buys Foxconn and makes it one company, now they keep $700 to make the phone with. Taxing on net fixes this.
replyIt's not required for personal income because you can't conjoin yourself with your butcher to become one person.
I don’t think you’ve thought through the downsides of doing it any other way. It’s not viable.
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