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.

Back to issue
Back to index