That's a fair cop but it is not my point. I have two: 1) why is this anything to do with tax? 2) if the aim is to deliver more tax revenue to poor countries, do we have a reasonable basis for believing that this will not be actively harmful, let alone work?
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Again more to read with interest. This looks more of a paradigm shift then CCCTB or FA, much more than CBCR. I suspect I will have all of the reactions already described!pic.twitter.com/QpeUCZcLK3
I've gotta say I'm still not convinced (although, like @_DavidQuentin 's piece it does make you think...) . This feels circular. Set a living wage figure - define wld only accept less if compelled What is it that compels them? The fact that the figure defined is not on offerpic.twitter.com/RtLxA05H2I
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Then there is the problem that figure defined is so much higher than prevailing average wage (not just in that industry) - so by definition most people in the economy are working 'under compulsion' -- same approach to tax cld apply to all biz? ( but isnt this just taxing labour?)pic.twitter.com/iCW1LsjIix
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I know its only an illustration but what is this industry where you can buy something for $5 in one country and sell it on for $105 in another without any additional costs and make a profit of $100 ??
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I don’t see circularity in that living wage is economic analysis of inputs eg calorie needs. But let’s say you’re right. If estimating a counterfactual and using it to find price/value gap requiring adjustment is circular then every transfer pricing adjustment would be circular.
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Not just calories though. e.g. Anker method Vietnam - they couldn't find any workers living in the type of standard of accommodation they considered minimum. Asia floor wage calculated to support 2 adult dependents or 4 childrenpic.twitter.com/Ydb7TQcTXW
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Agree. Gathering thoughts. Assymetries? Poss competitive advantage for local v intl firms in same biz. So might drive automation and/or move production away. Also not sure labour is the key component of value added. Or how to calculate adj - back to FA problems re specificity. .
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