Some form of transaction tax might be feasible.
We already have a tax based on adding a certain amount to each transaction in New Zealand in the form of GST.
Perhaps we could add a new transaction tax for companies whose head office is not in New Zealand.
We could even allow them to offset any company tax paid in New Zealand against the total transaction taxes they pay here.
That would make the point very clear: either pay a reasonable amount of company tax or pay the full transaction tax.
Multinationals are of course objecting saying they already make a contribution to the price of civilisation in New Zealand by paying GST and PAYE on their employees’ wages.
That is misleading.
While companies bear some of the cost of GST ultimately the full cost of GST is borne by end users.
That’s the ordinary citizens of New Zealand you and me – the consumers purchasing goods and services.
By and large companies act as tax collectors for GST but they don’t by any means bear the full cost themselves.
As for PAYE on their employees’ wages again that’s not the company paying tax.
It’s the employee paying tax.
All the company is doing is collecting the tax on behalf of government.
This imposes a cost on companies but they can claim a tax deduction for it.
So these big international companies are engaging in some fairly interesting tax minimisation activities and they’re trying to claim some kind of social credit for their employees’ taxes too.
‘We’re good citizens because our employees pay tax’.