17. Foreign Sales Revenue Tax

Businesses or corporations based or headquartered in one country, but with significant sales in a foreign country, should have those sales in that foreign country treated, for tax purposes, as if they were revenues generated by independent businesses within that foreign country.

For example, Sony Corporation is a Japanese-based business having total global sales revenues (2008) of $79 billion including US sales revenues of $20 billion. For Japanese tax purposes, Sony should be taxed on its total income of $79 billion. But for US tax purposes, Sony should be taxed just as though it were a $20 billion US-based business. These US tax revenues should be paid to the US government.

This would provide a significant economic disincentive for producers operating in foreign markets. It would also help discourage companies with large US-based operations from moving their headquarters offshore just to get away from paying US taxes.

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