Wednesday, February 15, 2012

Equitable taxation and distribution

I'm irritated by companies shopping around for the best international tax deals.

As companies go global, so should the tax laws.

So how about this for a suggestion. All non-individuals, i.e All companies, partnerships, trusts and for profit organizations (including religions) have exactly the same tax on gross revenue. Something reasonable like 5% of gross. Not net revenue to prevent creative accounting, like that seen in Hollywood studios. In this way, it's like a global GSt.

This revenue is collected automatically by an international organisation similar to the IMF.

Some revenue is retained to fund international bodies under the UN.

The remainder is then distributed to nations using on a formula based on the number of people, the cost of living (using the Big Mac index?) and that nations ratings from Amnesty International and Transparency International - so the more equitable and honest nations do better than corrupt and oppressive ones.

Personal income can still be collected by national governments.

Think of savings in simplification of corporate taxation rules around the world.. And the increased income from preventing corporate tax evasion.

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