France's President Hollande: Eradicate tax havens

[justinian]

Kasz216 said:

Augen said:
I would think you'd need something major like all of the G-20 to make this start to happen. Otherwise if one country does this like France they'll just end up hurting themselves as businesses that do not absolutely have to be there will move elsewhere.

Even if the G20 did this... they'd still do that.  You'd just see a vast increase in the companies "based in dubai" and places like it... with branch offices elsewhere.

 

What REALLY should be done is the replacement of a corporate tax with that of a corproate VAT.   So instead of getting taxed for being in the country and providing jobs, you get taxed for everything you sell in the country for the priveledge of using the market..

 

So instead of saying "Thank you manufacturing company for not getting cheaper labor in mexico, now pay a bunch of heavier taxes on top of that."

 

They can say "Screw you chinese manufactuerer.... we're taking a cut of everything you sell here."

 

Don't all non-domestic manufacturers pay tariffs?

As for corporate VAT the whole idea is too make your country attractive to investors. If you make it difficult for them they will go somewhere else.

On one hand all the talk is about getting foreign investment in your country and on the other you want a bigger share of their pie.

The powers that be created this "global open market" in the first place. If others prosper while they suffer then they must blame themselves... but that's another subject.

As for eradicating tax havens what a load of cobblers. The rich have no loyalty to anything but their wealth. That's why so many abandon their native country and leave for or utilise countries like Switzerland when their governments come down to hard on them, or rather when they think that their governments come down too hard on them.