Tax justice, capitalism and the rent-seeking multinational corporation

Tax Research UK:

This is also why multinational companies are so dedicated to re-engineering their businesses to create debt as a consequence of their trading wherever it is possible. So, telephone companies wish to sell phones on contracts that disguise implicit high rates of interest. And retailers seek to provide credit cards whilst care manufacturers make most of their money from extending credit to their customers, and not by making the car. That’s because the excess rates of return on capital that the implicit interest rates in these transactions implies provides the rent that multinational companies are now seeking rather than from making the product itself.

Interesting observation.

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