Base taxation on inputs and outputs
There is an ever increasing trend for global corporations to buy inputs (labour, materials etc) in one group of countries and to sell them in another group of countries. By way of example, consider where Apple has its devices manufactured and where they sell the bulk of them.
So a taxation system for global corporations should base the calculation of tax on total economic activity, rather than just outputs (sales). Under normal circumstances, the sum of inputs and outputs would be under twice the output (profitable). An equitable percentage of this sum would levied by way of taxation and distributed to the taxation authorities of the nations in which economic activity occurred on a basis that reflects the proportion of the activity in that nation to the total global activity.
Biting the hand that feeds IT
