1.Do you believe Amazon is taking unfair advantage of the tax system?       2.If tax laws are changed so that companies are no longer allowed to reduce their tax debt by deducting expenses for investment into research and development, do you think companies will reduce spending on innovation? Why or why not?       3.How can communities attract business investment without giving away their tax revenue?

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter16: Government Spends, Collects, And Owes
Section: Chapter Questions
Problem 20AA
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1.Do you believe Amazon is taking unfair advantage of the tax system?

 

 

 

2.If tax laws are changed so that companies are no longer allowed to reduce their tax debt by deducting expenses for investment into research and development, do you think companies will reduce spending on innovation? Why or why not?

 

 

 

3.How can communities attract business investment without giving away their tax revenue?

 

 

 

4.Globalization has made it more difficult for national governments to tax : orporate income effectively because it is difficult to establish where the income was earned. Companies like Amazon exploit this to shift their tax burdens to countries with lower rates, effectively depriving some countries of revenue they deserve and need and sending money to countries that do not bear the cost of supporting the company's operations. Should countries compete for corporate tax revenue by offering lower rates than their neighbors?

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