Revolutionizing company taxation: cash flow over income sparks global debate.
The article discusses the idea of taxing companies based on their cash flow instead of their income. This cash-flow tax would simplify things by treating expenses as they happen, without needing to calculate depreciation or debt costs later on. The researchers point out that implementing this kind of tax could have some challenges, like making sure it's fair and doesn't create problems for international trade. In a closed economy, a cash-flow tax might be a better option because it's easier to manage and doesn't affect investment decisions as much as an income-based tax would.