Comment by toast0

Comment by toast0 3 days ago

3 replies

Ordinary people can't do this because they missed the window, but also because their labor has a clear nexus. This scheme worked because when a product is designed in one locale, built in another, and sold in a third, there's some reasonable question of what the nexus of the income is.

Ordinary people that have written books or songs or otherwise earn royalties from creative works on a regular basis could probably have arranged for ownership of their royalties to be owned by a complex corporate structure as well, but I don't know that very many ordinary people earn enough in royalties that tax avoidance is worth the setup and maintenance costs.

BobbyJo 2 days ago

I mean, the clear way to deal with this is to make them choose, and allow import tariffs. Get taxed where the nexus is, and pay to bring the value to other jurisdictions.

I understand that the web of various tax laws and trade agreements makes this impossible though. 80 years of cruft is too much to sift through to improve things in one fell swoop I suppose.

  • lucianbr 2 days ago

    > the clear way to deal with this is to make them choose

    My understanding is that the whole problem stems from companies being able to choose. Apple chose to pay taxes in Ireland for some things, because Ireland gave them a tax advantage, thus avoiding taxes in other European countries.

    Allowing import tariffs between EU countries would maybe help with this but cause other problems. The EU free market isn't a whim, it has good reasons to exist and significant benefits.

    There is no "clear way" to fix this. If there was, it would be used already.

    • BobbyJo 19 hours ago

      > There is no "clear way" to fix this. If there was, it would be used already.

      What do you mean by "this"? When I said "this", I meant this specific form of tax avoidance. There is a clear way to fix it, as I mentioned.

      When you say "this" it seems like you mean tax avoidance in general, in which case I would agree that there is no clear way to fix it.