It is likely that those companies are paying tax, just not in Belgium. They are probably shifting profits overseas, and paying taxes over there, because the Corporate Tax rate in Belgium is quite high (comparatively). If you lower taxes, you could possibly convince companies to retain some of that profit, but there is the risk that they would not, and there would be a loss on taxes that are currently being paid - it's why people don't like to rock the boat, as it were. There are other incentives a country can do to retain corporate profit, but it might not be worth the risk.iseko said:Hmm, would be a toughie for me. I live in belgium and here we have companies that don't pay tax. Well they do but due to our taxation system they can bend the rules and come out at a net 0% paid (roughly, could be 1-2%). And it is pretty much legal. Now I don't know how they do it. But since it is legal, I'm assuming our countries rules are fucked. HOWEVER, the taxation on wages is so incredibly high that it is still not very profitable to produce stuff in our country (t-shirts, refrigerators, cars,...). Only stuff that requires highly educated work personnel is being produced here. So, even though it is fucked up that they don't pay taxes, I would not change it. Out of fear of even more companies packing up their shit and shipping off to another country. Which makes me a liberal I suppose.
Now mind you, my opinion is based on very little actual knowledge of this topic. So you might say: nop, you're wrong. I'm not too vocal about this stuff if that counts xD.
There is a significant domino effect whenever things like tax rules are changed, and it's often incredibly difficult to predict what will happen. However, according to the comments section on youtube, just doing this one change will fix everything...
Ugh.