What is Destination-based? Is this similar to the unpopular Cash Flow Tax proposed in 2017?


No. Cash Flow Tax is a type of Destination-Based Taxation, but there are different types, such as Sales Factor Apportionment.

Destination-Based Taxation is tax associated with the final location of the product or service. This stands in contrast to Origin-based taxation which is defined with the source of the creation: Capital, Labor, Headquarters. While there is a philosophical debate as to where the value is created, as a practical matter, All origin-based taxation is subject to easy to move techniques to avoid tax. "Sales" stands in contrast as the customer is difficult to move. But taxing Sales directly creates other distortions and can harm retailers. Taxing profits based on sales is a Destination-Based Taxation model with the least distortions and the most simplicity.

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