Taxation and government resources
The debate on taxation of information exchanges is tangled between two
conflicting requirements. On one side, in order to encourage innovation
and new products or services whose development has a positive impact on
growth and employment, governements often wish to avoid any new specific
tax, or even to create favorable taxation regimes for emerging information
exchanges. On the other side, since there is a general trend towards a
greater share of the economy and activities being based on information
exchanges with intangible mediations, and thus escaping traditional taxation
mechanims, many a commenter has pointed to the risk of erosion of the tax
basis. These two vision are based on visions at different time scales.
How to reconcile these two time scales is a difficult problem.
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