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gruffydd

The City - Heist Of The Century

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http://www.guardian.co.uk/commentisfree/2011/feb/07/tax-city-heist-of-century

'I would love to see tax reductions," David Cameron told the Sunday Telegraph at the weekend, "but when you're borrowing 11% of your GDP, it's not possible to make significant net tax cuts. It just isn't." Oh no? Then how come he's planning the biggest and crudest corporate tax cut in living memory?

If you've heard nothing of it, you're in good company. The obscure adjustments the government is planning to the tax acts of 1988 and 2009 have been missed by almost everyone – and are, anyway, almost impossible to understand without expert help. But as soon as you grasp the implications, you realise that a kind of corporate coup d'etat is taking place.

...[Cameron] has quietly been plotting with banks and businesses to engineer the greatest transfer of wealth from the poor and middle to the ultra-rich that this country has seen in a century. The latest heist has been explained to me by the former tax inspector, now a Private Eye journalist, Richard Brooks and current senior tax staff who can't be named. Here's how it works > http://www.guardian.co.uk/commentisfree/2011/feb/07/tax-city-heist-of-century

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Meanwhile, inequality issues are all over the papers... after the IMF raised the issue. One of Harvard's top professors had written a hard hitting article on the issue, circulating the world's media. Here's another article from the evening standard> http://www.thisislondon.co.uk/standard/article-23921128-now-this-rich-poor-divide-threatens-our-financial-future.do

Strauss-Kahn is giving speeches warning that inequality was a major cause of the financial crash and arguing that workers must be given greater bargaining power, and a greater share of the world's wealth if the crisis is not to be repeated. Ordinary people need more money, better social safety nets and decent jobs.

Edited by gruffydd

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Like I said before the END game of this uber-wealthy establishment is to kill off the Welfare state, NHS etc etc thru deprivation of funding from tax avoiding big business/World (parasitical) corporations!

Stamp on the plebs heads whilst they grovel on the ground!

Edited by erranta

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Like I said before the END game of this uber-wealthy establishment is to kill off the Welfare state, NHS etc etc thru deprivation of funding from tax avoiding big business/World (parasitical) corporations!

Stamp on the plebs heads whilst they grovel on the ground!

Its outrageous. Britain, no longer an imperial power gives up on the idea of trying to tax any business anywhere in the world and seeks to concentrate on taxing economic activity in the UK only.

Outraged Brits up in arms because globalism and cheap travel should only apply to their easyjet holiday flights and private internet and not to global business who can choose anywhere they like to have their headquarters. Meanwhile they turn the other cheek and buy something from Amazon and thereby engaging in tax avoidance through Jersey websites.

The Guardian article was pap written by an idiot who has no idea about the tax system, economics and seems ignorant of the case that globalisation means just that. They would rather stand by as businesses who can chose to have their headquarters anywhere do just that. I wouldn't care the old (current) system that tried to tax economic activity in (say) India in the UK was hardly reasonable. If Japan tried to tax the profits of the Honda plant in Swindon in Japan as well as the UK there would be much wailing and gnashing of teeth. Buts that is exactly what our tax system as it has been does in reverse. To try and say we are trying to be a haven like Switzerland is rubbish. Our existing tax system is more penal on global business than, for example, the US. So without taking some action where is that business going to go elsewhere.

To moan because we cannot tax the world, not the activity here - that stays to be taxed here, but because we cannot continue to tax manufacturing, selling, trade undertaken in (say) South Africa by a South African business with South African employees that happens to be a branch of a UK company so we can pay for bloated public services beggers belief. Because thats what you are in effect saying.

Just hollow threats that business will go elsewhere. No not really. Quite a few PLCs have gone - Wolseley was the latest as the majority of their profits are earned from making stuff and selling it in other European countries through depots there. Why in hell should we tax the profits made by Wolseley in France. Well thats what we try and do. And take HSBC - the clue is in the title; Hong Kong and Shanghai Banking Corporation. What right have we to insist they stay here. They do lots of business here? Well they do lots of business everywhere and if we want them to stay and maintain their HQ here we need to do a little more than tax them to buggery from their profits made by their staff in New York, or Singapore or China. We can tax them on the profits made by their people in the UK. We have no right to tax them on their profits made by their peope in (say) Korea.

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These measures will drain not only wealth but also jobs from the UK. The new legislation will create a powerful incentive to shift business out of this country and into nations with lower corporate tax rates. Any UK business that doesn't outsource its staff or funnel its earnings through a tax haven will find itself with an extra competitive disadvantage. The new rules also threaten to degrade the tax base everywhere, as companies with headquarters in other countries will demand similar measures from their own governments.

Just another example of the race to the bottom.

We need to view access to the demand for goods and services itself as a taxable good. At the moment those companies that create that demand by employing local labour and paying local taxes are being undercut by those that sit offshore, pay foreign labour and avoid tax in every way possible.

There should be a price paid for entry into a market place for those who do nothing to contribute to that demand, just take from it.

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If, for example, Dirty Oil plc pays 10% corporation tax on its profits in Oblivia, then shifts the money over here, it should pay a further 18% in the UK, to match our rate of 28%. But under the new proposals, companies will pay nothing at all in this country on money made by their foreign branches.

Firstly, I don't like the language "Dirty Oil PLC", like Monbiot doesn't benefit from the oil industry? Yeah right. He's also a global warming disciple.

If money earned outside of the UK is brought here it is essentially debt free money as it was created as debt somewhere else. In the absence of monetary reform encouraging this can only be a good thing.

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Just another example of the race to the bottom.

We need to view access to the demand for goods and services itself as a taxable good. At the moment those companies that create that demand by employing local labour and paying local taxes are being undercut by those that sit offshore, pay foreign labour and avoid tax in every way possible.

There should be a price paid for entry into a market place for those who do nothing to contribute to that demand, just take from it.

Nice post. It's exactly what we need to do.

The Tories haven't yet realised that the game is up on globalised free trade. The acceleration of off-shoring and loss of jobs that will inevitably result from these tax changes will bring about a defining moment - when the public finally realise that free trade we have been suffering is not good for the population at large, only for corporations, the banks and the ultra wealthy.

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Nice post. It's exactly what we need to do.

The Tories haven't yet realised that the game is up on globalised free trade. The acceleration of off-shoring and loss of jobs that will inevitably result from these tax changes will bring about a defining moment - when the public finally realise that free trade we have been suffering is not good for the population at large, only for corporations, the banks and the ultra wealthy.

And the realisation will be in the form of inflation? Then it will make sense to do things here again.

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And the realisation will be in the form of inflation? Then it will make sense to do things here again.

Not a hope in hell it will come back en masse once it has gone.

Not without an almost total block via trade protection policies anyway.

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Not a hope in hell it will come back en masse once it has gone.

Not without an almost total block via trade protection policies anyway.

If people want something and can't afford to import it, someone will see that opportunity and start making it here.

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If people want something and can't afford to import it, someone will see that opportunity and start making it here.

With what, where and by whom?

The machine tools have gone, the skills have gone, the parts are all made abroad, the raw materials are from abroad, the "brownfield" industrial sites are now rabbit hitches.

Edited by OnlyMe

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Not a hope in hell it will come back en masse once it has gone.

Not without an almost total block via trade protection policies anyway.

If the inflationary shock is strong enough who knows. It would certainly result in protectionism and with that increased onshore production.

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With what, where and by whom?

The machine tools have gone, the skills have gone, the parts are all made abroad, the raw materials are from abroad, the "brownfield" industrial sites are now rabbit hitches.

Oh. Yes, I think I'll kill myself now.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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