Taxing Intellectual Property

[faelanstevie]

HI,

OK, the core idea here is this: with modern tech, a large amount of the value of many companies is due to intellectual property that is protected by copyright and patents.
Take for example an iPhone. It is really very much like any other smart phone but it has a lot of extra value in the form of money that people actually pay because it has a certain kind of software. That's where nearly all the profit in selling an iPhone comes from, and that value is principally generated in the markets where those patents and copyrights hold sway. Thus, IMO, the USA by protecting that IP (preventing the likes of HTC from making straight-up iPhone clones), essentially all the difference between the manufacturing cost of the hardware and the shipping costs should count as taxable US income as far as US sales go. It can't really be argued that value is produced overseas because as far as US law is concerned, we don't care. It's the US patents and copyright that count. So I propose that the USA cut the bullshit about fictitious transfer costs and lying attribution of profits to countries that don't have an income tax (or have a low rate) and just tax what we figure they gain from selling their products here as opposed to not selling them here at all. Audit their factories to figure out how much money they actually spend making their stuff -- wherever they make it. They can deduct that, and their US expenses and US development costs but that's it. The rest is profit and it only exists because the US government protects them in this market, so it's ours to tax.

Please help.

I didn't find the right solution from the Internet.

References:
https://arstechnica.com/civis/viewtopic ... &t=1369711
Motion graphics company

Thanks!

[Liza]

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