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.
Vox Political
