Yup.. Must be a tiered system or percent of sale or flat tax per item..
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What’s paying your way though?
Focussing on one tax doesn’t tell you much.
Royal Mail for example in 2018 paid zero corp tax but in the same year generated over £1.8bn in tax receipts through other taxation (NI, Income Tax, business rates etc.)
Should we all boycott the Royal Mail based on their corp tax record (and not just their awful service [emoji2957])?
AstraZeneca is another company that rarely pays corp tax due to R&D credits. Those credits go towards paying for high end research and development and (allegedly) support thousands of high end jobs. Do we boycott the new vaccine because the company that developed it doesn’t pay a lot of Corp Tax? Or do we swipe away the credits, tax the company hard and see the jobs shift overseas?
I’m not really arguing one way or the other I suppose it’s just that it seems the discussion always falls back onto one tax amount that is maybe far from reflective of the overall economic benefit a company may provide across a number of measures.
I'm South Trafford so I rarely venture into Manc city past any work commitments but even Hale and Alty high streets are peaky now. I'm not disagreeing with the moral argument but those setting the rules don't play by them so why would companies?
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That statement is what a massively capitalist society tells you is ethical.
Baws to the shareholders, they can still make money, just a bit less.
Tax the super wealthy massively and tax the super wealthy businesses massively.
There’s sod-all ethical about making rich people richer.
The shareholders are often ordinary people’s pension funds. The board have a job to do which is to make money. They do that by providing goods and services that ordinary people want to buy at the right price. That’s a good thing.
If we want to tax an activity then we should tax it but expecting companies to give the exchequer money as a gift just won’t work.
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If I sign up for an Amazon Prime membership does that get me free delivery and the movies etc on Prime Video or are they separate subscriptions?
The companies don’t pay tax and NI though, that’s the workers, it’s horrible misguided to credit the business with that tax.
“What do you mean we don’t pay our tax? Look at how much the workers pay you! (It’s only right that the workers pay their way but why should we?)”
I have no issue with giving credit for the economic benefit, and that’s provided that benefit is created through treating workers properly (living wage, good working conditions etc) but that shouldn’t preclude companies from paying tax. Perhaps if they did that, we wouldn’t need to raise as much from the people who can least afford it.
FWIW, if it was up to me I’d also put income tax at 100% of anything over a billion pounds and shore up the loopholes.
But the point is that fundamentally it’s the companies activities that are paying the workers wages...that’s still companies generating monies to pay the tax. As it is companies already pay substantial direct pay roll taxes before the worker.
As for taxing the super rich...well most won’t disagree with that but it’s rather tangential from assessing companies wider economic benefits v focussing on their corp tax contributions!
Amazon and their like need to pay the same level of tax on earnings made from the Uk as every other non tax avoidant business. No excuses, no special pleading. I’m sure if they don’t like that, they can piss off. It’s a capitalist world, other companies can fill the breach.
Would they fill that gap, though? I'm not sure there were many alternatives in the wings when Apple negotiated its tax deal in Ireland.
I can see a situation in Sunderland, when we have left the EU completely and Nissan have moved out, where a similar deal might be negotiated. In the grand scheme of things, perhaps no bad thing.
One good example today of taxes paid by companies not evidenced in their Corp tax numbers is the decision by Tesco to return their business rates relief...a cool £585m.
Will be interesting to see if the other supermarkets follow suit.
Late last night, my wife mentioned that she'd been thinking about buying a book light for reading in bed.
Unbeknown to her, I looked on Amazon and ordered one for her. That was at 11.38pm.
It arrived half an hour ago!
Whatever gripes people have about Amazon or Besos, that's fantastic service.