Who Pays the Tax?

[Martin Hash]

The giant scam which is "Free" Trade has some obvious exploits that no one ever mentions. For example, if an American toy maker sells a doodad through Walmart, it pays taxes to the U.S. Government on the profit it makes. U.S. sanctioned accountants keep records and the American toy workers have jobs. But if Walmart buys the same toy from China, the U.S. Treasury receives no taxes, China's Treasury does, and Chinese workers have jobs. Worse, if a Stateless international corporation based in a tax-free location simply has the toy made in China then no nation gets the taxes. How can any local manufacturer who pays taxes compete cost-wise with an entity that doesn't?

[katarn]

At this point, I don't know that they could (as a group) do well without government intervention to prevent statelessness as an advantage. i.e. tariffs on the company itself that employs such a strategy. Better ideas (I'm sure they're out there)?