Tag Archives: corporate tax

Daily Headline – 20/02/13

Bitter coffee; 1701 applicants for 8 jobs

Coffee cups Caffe Nero Costa StarbucksThe state of things in the UK seem to be going from bad to worse. Costa Coffee (a British coffee chain) is opening up another branch which has created 8 jobs (3 full-time and 5 par-time) and so far they have received over 1700 applications.

Costa said they were shocked at the high number of applicants, it’s unclear why they are shocked, don’t they read the news? Or maybe from the bubble of the elite they are blissfully unaware of the plight of the working class… or maybe they just don’t care.

The applicants are said to include people vastly over qualified for the job such as former retail managers with years of experience and university graduates.

Sales at Costa have risen 7.1% since a boycott of US coffee chain Starbucks took place for not paying any corporation tax in the UK since 2009 and the UK’s Caffè Nero who didn’t pay any tax last year despite profits of almost £40m.

For a better tasting coffee, try an independent café.

Daily Headline – 16/02/13

G20 and Global Tax?

Global tax g20russiaMultinational companies buy, sell and ship money all round the world to either avoid paying tax altogether or to pay the very least they can.

The problem is, this is not illegal, loop holes exist and some countries deliberately keep corporate tax as low as possible to attract businesses and jobs.

If a global, unified tax system was in place it could (if done properly) eliminate the constant ‘threat’ of businesses and jobs packing up and moving to another country.
The money raised would be a much needed boost to help combat unemployment and improve heath and education.

The G20 Finance Ministers and Central Bank Governors’ Meeting will take place in Moscow, Russia from 15th – 16th February 2013.
Amongst other things the ‘global economy outlook’ will be discussed with the UK, France and Germany expected to push for global tax rules to help clampdown on corporate tax avoidance.

A full list of the G20 Finance Ministers and Central Bank Governors’ Meeting program can be found here.

There are almost countless examples of corporate tax avoidance, here are a couple…

Starbucks has paid £8.6m in corporation tax in its 14 years of trading in the UK, and nothing in the last three years.

Facebook paid no corporate income tax in the US last year, and instead reclaimed $451m in taxes from the Internal Revenue Service (IRS), despite recording profits of over $1bn.

Amazon generated £7.5bn from sales in the UK in the last three years, did so without attracting any corporation tax on the profits from those sales.

Iceland; Socialism works!

By Leon J Williams

Since the economic crisis Iceland has been on the verge of bankruptcy, it’s banking sector collapsed followed by huge international anger at the government allowing their banks to fail, rather than as with the US and UK which bailed out those banks with taxpayers money.

So since these times how have the three countries fared?

I have taken a little look at unemployment, national debt and tax rates for Iceland, the US and the UK from 2010-2012.

Unemployment
……….Iceland   USA      UK
Peak     9.4%      9.4%     8.1%
Now      5.4%      7.75%   7.8%

Debt (as % of GDP)
……….Iceland   USA       UK
2010     123.8     94.2      82.2
2011      99.1      102.9     82.4
2012      97.3      106.5     88.4

Tax Rates (up to)
…………… Iceland    USA      UK
Income tax      46.24%     15.3%    50%
Corporate tax   20%        39%      24%
VAT             25.5%      0%       17.5%

Movement
……….Tax   Debt   Unemployment
Iceland   ↗       ↘          ↘
USA       ↘       ↗          ↘
UK        ↘       ↗          ↘

Iceland’s unemployment rate has fallen by 4% the most during this period and is the only country of the three whose overall tax has increased and is the only country whose national debt has fallen.

Some will say this is clear that the policy of socialism of increasing taxes for everyone (not just the poor) works and in a sustainable way.

Often the specific type of socialism is referred to as ‘Nordic Socialism’.

Whether or not this is a form of socialism or not it should help put to bed the myth that the right-wing churn out that you must lower taxes so that businesses will employ people which will in turn reduce government debt as less people depend on the state.