The idea for this post was inspired by a post on Bernie Sanders’ Facebook page. Here is the graphic that went with the post.

Certain countries make a living being tax havens for corporations.  I imagine they charge companies a significant amount of money as far as the countries are concerned, but an insignificant amount compared to what the companies would pay if they incorporated in their home country or had an honest set of books that said where in the world they made their profits.

So I had an idea from my own little pointy head.

All non-tax haven countries should adopt a policy of applying their tax policies on the profits companies make in their own country and to all the profits those companies claim to make in tax haven countries.  That way, the companies would pay the normal rate to many countries  on profits they  claim they make in tax haven countries.  The only way a company could avoid this many multiples of taxation would be to declare their profits in a non-tax haven country.

The tax haven countries would be free to offer whatever they wanted to companies, but what they offered would be of little value.  Problem solved with no interference in the internal affairs of the tax haven country 🙂 – as if they aren’t interfering with our internal affairs.

It also allows the non-tax haven countries to make tax decisions without fear of corporate profit flight to tax havens.

Can anyone see any problems with this modest proposal except for a possible global war over the issue?