Coalition tax reforms to allow large firms and banks to pay NO UK TAX here on income from tax havens
I'm no expert, but George Monbiot and Private Eye report that arcane tax law changes will have the effect of ensuring that medium and large companies that make profits abroad will pay no additional tax when brining it back to the UK. Only Switzerland has such massive tax ememptions......
The government are planning what journalist George Monbiot suggests may be 'the biggest and crudest corporate tax cut in living memory'.
This is not the well publicised cut in the corporation tax rate from 28% to 24% but something far less publicised, yet much more far ranging and destructive to the common good.
The plan is to charge UK companies NO TAX on earnings from their foreign branches, whilst still allowing them to claim the expense of funding those branches against tax it pays in the UK.
This will have the effect of UK companies transferring as much of their operations as possible overseas. So not only do we lose out on a huge amount of tax receipts, we lose a huge amount of jobs too.
The scariest part of this is that something this important can be kept so under the radar. This proposal desperately needs to be publicly debated.
See George Monbiot's article in The Guardian for full details: http://www.guardian.co.uk/commentisfree/2011/feb/07/tax-city-heist-of-century
Sorry, I omitted to put 'campaign against' at the front there - new to the suggestions blog, and had just thought it was a matter of listing the issue!
Anyway, there are a couple of other suggestions on the same issue, to which i transferred my votes, so please do put it to one more clearly worded!!
Sorry, I must be drunk or something. Cos the way this reads, someone wants 38Degrees, a voice of the people, to start a campaign to ask the Tory led Government to let the Super Rich, the Greediest of our society who have been bleeding the taxpayer dry, to pay NO TAX AT ALL on money they make abroad? What? So that we the people have to pay even more to get by and have even less public services? Please tell me I'm reading this wrong!
I find this incredibly offensive. Dorset is losing all school crossing patrols for the sake of £200,000. All this talk of the nations credit card, to make us accept cuts, and they hand the money to the banks. Unbelievable.
Tim Proctor commented
Is Peter 1919 uniformed or uninformed? The Monbiot article is backed up by the sturdyblog article mentioned by Jamie Knights which confirms that something smelly is afoot. Let's start asking our MP's pointed questions especially those of us with Lib Dem MP's
jamie knights commented
P Strover- the Governemnt is acting in its own interest. Over half the funding for the Tories election campaign came from high finance
jamie knights commented
This sumamry of the Tory dastardly plan gives a bit more detail than Monbiot-
I've just finished "Treasure Island" book. It is like a really bad conspiracy movie with the general public as the target. These people are just evil and MUST be stopped.
David von Geyer commented
There are many other favourable conditions for tax avoiders for example only complete 24 hour days are recorded against the 90 days that rich people are allowed to spend in the UK. For example, fly into London on your private jet on a Monday, fly out on Friday evening and that counts as 3 days spent in the country. Go to Brussels on Tuesday evening, come back on Wednesday morning and you'll only have "spent" 1 day of your 90!
Depending on where you are based, if you are paid (earn seems the wrong word) £1 million/year the fact is that you will be paying at least £200K less annually than if you live in the UK, At £4K per week, that pays for a lot of airline tickets.
David von Geyer commented
It's not surprising that this government is helping its mates to become even richer - the last Conservative governments sold off the nation's assets through privatisation, the only stipulation for getting your nose in the trough was to have some spare cash. What is surprising is that we are still putting up with it.
Everyone will remember the Facebook campaign that saw Rage Against The Machine become Xmas No 1 in 2009, less than 14 months ago. 500,000 people paid about a quid each to download it purely to put Simon Cowell's nose out of joint - in less than a week.
I ran a Vote For Yourself campaign last year trying to emulate this - it seemed logical that at least as many people would pay 50p for my campaign song the proceeds of which would have been used to fund the deposits for 650 candidates to stand pledging to introduce Internet voting for everyone ie the public would legislate directly.
Creating a Real Society in this way would make politicians redundant. I'm going to revamp the campaign during the run up to the AV referendum. This sop was greedily grasped by OK (Opportunity Knocks) Nick in order for him to persuade his FibDem buddies to abandon all their principles.
The Vote For Yourself Facebook page is easily found so join in and I'll be able to keep you posted - when I get into 7 figures it will be hard for Cam to cling on!
Monbiot is an uniformed idiot who has written a newspaper article without bothering to do any research.
We need another big push, people!
While I'm not in the least surprised by this - the Tories raison d'etre is the transfer of wealth from the poor to the rich - I am sickened and infuriated. Not just by the actions of the Tories, and the complicity of the Lib Dems, but by the people who actually voted for them. I mean, who *didn't* see this coming? Still, it's nice that I can have my worldview confirmed, yet again.
Here's the referenced article.
Give this issue the publicity it demands!
10 out of 10 to Monbiot for bringing this to our attention and 0 out of 10 to the BBC for not reporting it.
It's not that much of a achievement to keep tax law, which is pretty dull, on the downlow.
Our" government" isn't going to bite the hand that feeds/controls them.
Funny though how the bankers like to bite the hand that feeds them (us).
Is it time we stopped feeding THEM ?.
How many BILLIONS do THEY need ?
What are THEY and the greedy energy companies etc going to spend it all on ?
Not us that's for sure.
Anna, please withdraw your votes and give them to the issue linked below.
Anna Johnstone commented
This is outrageous. The banks still owe the taxpayer money, they should be made to pay back every penny without fail. Our public services are being cut to fund this. As I have always thought. The Tories are a bunch of well-dressed pirates and thieves.
Phil Belcher commented
This is the fundamental issue behing this governments actions. Their actions are all about furthering the cause of their paymasters the super rich. People need to know what is going on here and this campaign would be a start. Hard to keep up the deficit lie when you are giving money away to your pals.
Tony Goldman commented
“Others should definitely look into this (and are doing so) but one journalist saying something sensational (based on one dubious source, I hear) shouldn't be so readily believed. That goes for the Daily Mail and it also goes for The Guardian!”
The Guardian article is very detailed. It is not one lone journalist but two including Nicholas Watt who does not usually get things wrong. The details on pages 6 & 7 are fairly full and quite clear