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Corporate taxation - a broken model?
Comments
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I must add a vote of thanks at this point.
More than half a dozen posts in and no sign of 'it was Labours fault' or 'its all them nasty rich Tory types'
It's not a party issue. It's really about the fact that the interests of global corporations and nation states don't always align. This is an ever changing situation, I doubt there is any simple solution.
[apart from make the citizen pick up the tab, of course
]
In a sense we always do pick up the tab.
Doesn't matter whether that is through taxation or through paying for things personally, the latter just gives an illusion of choice.
What I think is now more visible is big chunks of potential taxation revenue being diverted.
If corporations are happy to take income form this country there should be fair and representative amount of tax paid IMO and not just through employment/local taxes."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
I must add a vote of thanks at this point.
More than half a dozen posts in and no sign of 'it was Labours fault' or 'its all them nasty rich Tory types'
It's not a party issue. It's really about the fact that the interests of global corporations and nation states don't always align. This is an ever changing situation, I doubt there is any simple solution.
[apart from make the citizen pick up the tab, of course]
Well either way the citizens pick up the tab as corporation tax will be passed on, partly, via increased prices and will also reduce dividend payouts which will reduce pension pots.
There seems to be an idea that some taxes like Corporation Tax are a free lunch for the citizenry (another example is the Tobin Tax) but it ain't so.0 -
Well either way the citizens pick up the tab as corporation tax will be passed on, partly, via increased prices and will also reduce dividend payouts which will reduce pension pots.
There seems to be an idea that some taxes like Corporation Tax are a free lunch for the citizenry (another example is the Tobin Tax) but it ain't so.
Maybe rightly or wrongly, but I have this feeling that it's one group of taxpayers picking up more of the tab at the expense of another group of stakeholders based elsewhere.
In a world of unified taxation rates this kind of chicanery would not take place would it? The expense of setting up these arrangements wouldn't be worth it. The real differences which do exist make these schemes beneficial to the companies. Doesn't that result through cost reduction?0 -
In what sense?
I had in mind the situation with two companies basically providing the similar services to the UK market.
One home grown that pays corporation tax and one foreign that doesn't.
The former is at a disadvantage.
Agreed.
What's at issue is the "management fees" that are levied to transfer profit from one country to another. Merely to minimise tax liability.
Even Eire with its low rate of corporation tax suffers.
If G20 countries make a united stand. Then will benefit all. As too much profit is ending up in tax havens. Which is to no ones benefit.0 -
When the oft promised World Government is in charge and the single global currency in place this will no longer be such an issue. :eek:
Until then Governments will always be playing catch-up, as the avoiders pay more for "expert" advice than the tax collectors (even though they both use the same advisers)'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
Thrugelmir wrote: »Seems as if times are changing.
http://www.reuters.com/article/2013/02/11/us-australia-apple-pricing-idUSBRE91A04H20130211
I have noticed that UK pricing in electronic goods compared to the US seems to work as if 1usd=1gdb i.e. a camera may cost 300 dollars in the US and 300 pounds in the UK.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
I have noticed that UK pricing in electronic goods compared to the US seems to work as if 1usd=1gdb i.e. a camera may cost 300 dollars in the US and 300 pounds in the UK.
Isn't that partly due to different purchase/VATrates?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Isn't that partly due to different purchase/VATrates?
Maybe, I don't know.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Maybe, I don't know.
The way we are going I wouldn't be surprised to see £ = $;)
The camera would cost £480 then:eek:"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
I have noticed that UK pricing in electronic goods compared to the US seems to work as if 1usd=1gdb i.e. a camera may cost 300 dollars in the US and 300 pounds in the UK.
Most likely US price excludes sales tax as that is added at point of purchase (if not inter state). So to compare prices you'd need to remove VAT from UK price. Which makes UK price £250.
$300 at 1.55 to a £ = £194
So in the UK will still pay an extra 20% or so.
Shipping is cheaper to the USA. that's one point to consider. 10-12 days from China to west coast by sea. To UK takes 4-6 weeks depending on weather.
The ships consume around £500,000 of fuel a week. Plus the charter fee. So an expensive business these days to move containers.0
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