Government talks tough on tax-dodging – while helping corporations cut bills

Public unrest: Thousands of people across the UK have demonstrated against government decisions that have increasingly burdened poor people with higher taxes while the rich, and fabulously wealthy corporations, have received tax breaks. The government's response has been to order water cannons from Germany. Think about that.

Public unrest: Thousands of people across the UK have demonstrated against government decisions that have increasingly burdened poor people with higher taxes while the rich, and fabulously wealthy corporations, have received tax breaks. The government’s response has been to order water cannons from Germany. Think about that.

How long does George Osborne expect us to believe his blather about cracking down on corporate tax avoidance when we have evidence all around us that he is helping multinational firms to get out of paying the tax they owe this country.

This is taking place at a time when the UK tax take should be maximised, in order to get borrowing down and help the country pay its bills.

And it is being organised by the Chancellor of the Exchequer – the government member whose principle job is to ensure that those bills can be paid.

All this doubletalk suggests he has a personal agenda that is different from what he’s been telling us, doesn’t it?

Vox Political has already dealt – at length – with the fact that the Coalition government has legislated to make it easier for UK-based multinationals to shift their income into ‘mailboxes’ in tax havens, in order to avoid paying tax in this country.

Why is Osborne doing this, when he knows we need the money?

We know that Osborne has cut Corporation Tax by a quarter – from 28 per cent to 21 per cent – during the course of this Parliament, even though changes in the rate of this particular tax have been proven to have no effect on economic improvement. Look at the USA, where a Corporation Tax rate of 40 per cent has done nothing to hinder the resurgence of that country’s economy.

Why is Osborne doing this, when he knows we need the money?

Meanwhile, we have been hit with a large increase in sales tax (VAT) which hits poor people hardest. As a result, they have to reconsider their purchases and buy fewer items, meaning the Exchequer takes less money, with this tax, than it should.

Why is Osborne doing this, when he knows we need the money?

The European Commission reckons it has declared war on tax evasion and avoidance – but has instructed member nations to single out only non-EU countries as havens, even though member states including Luxembourg, the Netherlands, Ireland and Belgium are known to have engaged in potentially harmful tax behaviour.

Why are these countries doing this, when they know they need the money?

Beginning in 2009 (meaning we started this under a Labour administration, please note), the UK began switching from taxing worldwide income to solely taxing profit that companies claim is earned within the country, a so-called “territorial” system. It eliminated taxes on dividends paid to a UK company, even if coming from a subsidiary in a tax haven.

Why is Osborne continuing with this, when he knows we need the money?

Beginning last month, the UK slashed the tax rate to 10 per cent from the regular 23 per cent rate on profit attributed to patents and intellectual property.

Why is Osborne doing this, when he knows we need the money?

Here’s why, according to Yvette Hodgson, a spokeswoman for the Treasury. She said the government is “committed to creating the most competitive corporate tax system in the G20.

“Global tax rules have stood still for almost a century. Britain is leading the international effort to bring them into the 21st century.”

So 21st century taxation means beggaring not only populations but governments as well, while allowing multinational corporations to make off with all the cash?

No wonder people in Britain are so angry. We have every right to be.

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9 Comments

  1. leonc1963 May 14, 2013 at 12:56 pm - Reply

    Reblogged this on Diary of an SAH Stroke Survivor.

  2. Angie May 14, 2013 at 1:15 pm - Reply

    If it was the like of you or me not paying tax they would be down on us like a ton of bricks but it’s the people who fund the party so they do not want to upset the people who may be paying them when they are out of office.

  3. guy fawkes May 14, 2013 at 2:24 pm - Reply

    Angie

    Talking of party funding on daily politics programme today a top banker was putting forward the stalled proposition that political parties should be publicly funded, a bit like the banks when they run out of money because of their folly – absolute disgrace that they should ask this of the public. Let the political parties beg in the streets for funding, they may find out what the people really think of them then.

    • Mike Sivier May 14, 2013 at 2:31 pm - Reply

      Agreed. Alternatively, perhaps we should all form political parties and claim a share of this public funding – see how far it would go then?

  4. pat May 14, 2013 at 2:31 pm - Reply

    OFF TOPIC

    PLEASE ALL SIGN THE ONLINE CONDOLENCE BOOK FOR STEPHANIE,
    Who committed suicide because she could not afford to pay her bedroom tax
    http://www.cutlerfunerals.com/memorialmessages.asp?id=657&sendmessage=yes

  5. Jean Cox May 14, 2013 at 3:09 pm - Reply

    Pat, I’ve signed the online condolence book for Stephanie. Although I didn’t know this lady personally, it shocked & deeply saddened me that we, as a society, are allowing this to happen to our vulnerable people. I myself have been pushed to attempt suicide because of this governments persecution & bullying. The poor, sick & vulnerable are being slaughtered every day. It has to stop now. More must be done to get these kind of shocking events onto mainstream news programmes. Perhaps people will then wake up & smell the coffee!!

    • pat May 14, 2013 at 3:27 pm - Reply

      jean, i agree totally with what your saying, its wrong that we are being persecuted by this evil sick Govt, whos only interests are to protect the richest of society, they do not give a f**k about us. pure evil they are. i have been so distressed & sickened since reading about Stephanies death it is so tragic, IDS should be held responsible.

  6. Smiling Carcass May 14, 2013 at 3:13 pm - Reply

    when corporate interests dictate government policy, that’s fascism.

  7. Thomas May 14, 2013 at 3:32 pm - Reply

    They only want the poor people to pay tax.

    And that they should be paid by public money? Disgusting. And ALSO if they only funded the big parties this way it would be unfair, whilst if they funded the small parties too it would mean funding parties like the BNP. Make them busk and do odd jobs for their funding.

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