Well, the proposal involves an allocation of the overall profits and does not involve a change to actual wages paid. You say the incidence of the allocation would be 100% on labor. That’s a good topic for further study, but I think we need an economist for it.
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right, discussed some in paper. What motivates this work is that intl consensus of value creation tacitly accepts exploitation of people (and environment) and allocates returns to exploitation mainly to rich countries. I’m curious about and bothered by that as a legal standard.
I think there are 2 Qs: (1) Is ALP reasonably workable system (or does the fuzziness of assessing value make it fatally flawed) (2) Would international tax system paradigm shift to address above benefit poor people in poor countries?
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For (2) Qs matter: whether Northern MNCs really big employers of poverty line workers, & whether e really making $100 profit on product they produce for $5 and sell for $105. There is danger of assuming intl. tax rules is the answer if intl tax is what we are interested in.
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My interest in international tax has led me to opposite conclusion: apart from administrative / withholding / reporting rules international tax is almost never the answer :)
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