Quote:
Originally Posted by DamageX
Exactly. No reason for any company to leave a market, as long as it makes a profit.
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And profits are taxed. They won't have a choice in that matter but they will have a choice as to whether to leave or not. Actually the way they will more effectively achieve this is by doing what they've been discussing at Brisbane (G8) which is to switch taxation from residency based to territorial based (over time) which means that taxes will arise on income where it is accrued rather than where the entity is resident.
That may well work but it doesn't solve the fundamental issue which is that these highly indebted nations spend more than they earn, with big government, large welfare programs, war doctrine, etc. In the UK, I know many people who do nothing, claim every benefit in the book and can earn $400 USD per week doing absolutely nothing. How sustainable is that? For how long will taxpayers put up with this kind of so called "redistribution of wealth".
Dont forget that the U.S. government passed its first, permanent income tax law in October 1913. Prior to that there were periods of high growth experienced by the US at times when there was zero income tax.