Australian tax crackdown to target Google, other multinationals

Comments (1)
Neurochuck wrote:

The economic and social effects of this form of tax “evasion” go beyond just the lost revenue to the host government.
It also makes it more difficult for local businesses and professionals who pay the higher tax rate to compete on price with “offshore” entities, and they go out of business.
Many American jobs in fields such as software engineering have likely disappeared for similar reasons, not because the workforce are paid too much, or pay too much rent in the Bay area, but because (eg Indian) corporations can avoid paying US taxes on their USA income.
Closing these multinational tax avoidance schemes should be more politically popular than raising taxes or cutting services, and would generate many economic benefits.

Nov 22, 2012 7:30am EST  --  Report as abuse
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