When the tax affairs of multi-national companies hits the news emotion seems to take over from common sense. Emotions are stirred by the fact that working people are forced to pay penal rates of taxes under threat of imprisonment while big corporations, including multi-nationals, get off lightly because they have the resources to study the law and legally pay the minimum that is required.
The fact is that these corporations are only doing what every other taxpayer on the planet, myself included, is doing i.e paying the absolute minimum they are legally required pay, not a penny more or a penny less.
The recent fuss over the tax affairs of Google, Starbucks, Apple, Amazon et al. has been manufactured by the global political class to facilitate getting their grubby fingers on more private sector wealth for them to squander on their global 'progressive' agenda and bribing the voters in their re-election bids.
Although the tax codes are grossly complicated, the issues relating to the political interference is not. Because the CEO's of these companies are doing nothing illegal the politicians are calling their morality into question.
How the public can fall for this nonsense is beyond comprehension. The political class, one of the most despicable groups of venal, hypocritical charlatans on the planet, is smearing a group of successful, innovative business people as being immoral.
When Google's UK boss Matt Brittin appeared before the House of Commons Public Accounts Committee, his defence of his company's tax affairs was sound. What his company is doing is totally within the law therefore, he says, it is up to politicians to legislate if they wanted to force a change.
In a statement of breath taking hypocrisy he was informed by the PAC Chairman, Margaret Hodge MP, that "we are not accusing you of being illegal. We are accusing you of being immoral".
This is the same Margaret Hodge who's family company Stemcor paid a measly $243,350 tax on $3.2 billion in UK business and a paltry $1.2 million on $1.1billion globally in 2011. This is the same Margaret Hodge who threatens sue anyone who suggests any impropriety in her tax affairs.
People who live in the real world are not specifically 'accusing Hodge of being illegal' but they are most definitely 'accusing her of being immoral'... and a colossal hypocrite to boot.
Incidentally, this is also the same Margaret Hodge who as leader of the loony left Islington Council, presided over child abuse scandal that shocked nation and got away with it without punishment.
The House of Commons is a veritable den of immoral tax cheats, as evidenced by the house flipping scandal whereby 'Honourable' Members changed the designation of their primary residences to claim expenses and allowances or to immorally avoid paying capital gains tax.
Tax avoidance is not confined to Great Britain, its a global issue. Who better to sort it out than macho PR Prime Minister, 'Call Me Dave' Cameron who made tax avoidance top of the agenda at the recent G8 summit.
What they didn't discuss at their choreographed, no tie summit was the immoral tax avoidance scams of their own political elite.
French socialist government tax avoiders
Greek socialist Prime Minister Papandreau's alleged involvement in an immoral family tax avoidance scam
USA Democrat immoral Charles Rangel's tax avoidance scams
Even American Treasury Secretary Tim Geitner was exposed as an immoral tax cheat
The question that the global political elite needs to answer is, what do they intend to do with all this extra money? They don't exactly have a great track record of spending taxpayers money efficiently.
Would they use it to deal with the deficits and the unsustainable debts they have irresponsibly run up?
Would they use it to shore up the military capabilities they are dismantling in the face of the global jihad and a nuclear armed Iran?
Would they use it to lower the deliberately high energy prices that is crippling their own people and making their economies uncompetitive?
Using past behavior as a guide they will squander the extra money on:
Increased welfare entitlements for purpose of increasing dependency for the underclass in exchange for votes.
Increase in foreign aid for blood soaked dictators and another $1.5 billion for the professional aid consultants in what is now an industry in itself.
Perhaps another $18.6 billion on useless IT projects for the NHS
Maybe $49 billion on an unwanted High speed railway that is projected to shave a mere 15 minutes off the journey time between London and Birmingham.
Untold billions on welfare payments and public services for the continuing policy of open border mass immigration.
The list is endless, however it must said that money is more efficiently spend by individuals and the private sector than by wasteful, career politicians.
Google, Apple, Starbucks etc. are more likely to spend their hard earned money on things that will benefit their businesses and by extension the people, than any politician who only has eyes on their own personal agenda which includes their re-election.
I have no objection to anyone minimising their personal or corporate tax bill, but I feel if you are going to trade and make profits here, then the tax should be paid here.
ReplyDeleteThat said, they'd only waste it.
Maybe they should bring in a new turnover tax especially for the likes of Hodge's company and Google etc.
Snouts In the Trough did an interesting article on Zombie companies recently, whose main aim, it seems, is to enrich the head honchos. Sod the shareholders and everyone else.
I agree with companies paying taxes where they trade and their money is earned but its up to the politicians to modernize the tax system to achieve this.
DeleteI would like a peek at Phony Tony's companies.