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From The Socialist newspaper, 22 May 2013

Big business tax avoidance scandal

Make the corporate fat cats pay!

Ken Douglas
We are the 99% - Take the wealth off the 1% Socialist Party placard, photo Paul Mattsson

Photo Paul Mattsson   (Click to enlarge)

We've been robbed! Every day big corporations are stealing millions from us; millions that could be used to employ doctors and nurses, to build desperately needed houses and to reverse the massive cuts being made by this Con-Dem coalition.

But hang on, it's okay. "It's called capitalism. We are proudly capitalistic. I'm not confused about this," said Google chairman Eric Schmidt in defence of his company paying only 6 million in corporation tax while earning a staggering 2.7 billion from sales in Britain.

That amounts to a rate of 3.2% - a miniscule amount compared, for instance, to UK basic taxpayers who have to pay a rate of 20%.

Schmidt himself has done very well out of capitalism - he's number 45 in the Forbes 400 richest individuals in America and is 'worth' $8.2 billion, no wonder he's not confused!

Google's corporate motto urges: "Don't be evil". Presumably that exhortation is directed at anyone except the people who run the company itself.

Fellow evil-doers Amazon managed to top even this. They actually got more in government grants than they paid in tax; grants of 2.5 million covered its corporate tax bill of just 2.4 million, while the company had sales in Britain of 4.2 billion.

Where will these companies' ill-gotten profits go? They'll add to the over 850 billion of corporate profits already in the bank vaults in Europe or go to shareholders to be stashed in tax-havens for the super-rich, bulging with up to 20 trillion world-wide.

Eric Schmidt will be able to trade in his $72 million yacht and his $42 million jet for even swankier models.

Meanwhile, ordinary people are being driven into depression and suicide as they seek to cut their already meagre budgets in order to pay the bedroom tax, or a fuel bill higher than it needs to be because of the price-fixing of the energy companies.

Dave Cameron, known for his fearless pursuit of comedian Jimmy Carr over his tax avoidance, met Eric Schmidt this week and you would expect that the subject of Google's tax-dodging would've come up.

But no, apparently the issue of tax 'transparency' was only raised in a general fashion in preparation for the G8 group of countries meeting in Fermanagh, Northern Ireland.

Cameron is forced to make a speech from time to time about corporate tax avoidance, so that the Con-Dem government can appear even-handed as they inflict savage cuts and wage freezes on the working class.

But their real attitude is summed up by Tory London Mayor Boris Johnson after Cameron had criticised Starbucks for not paying any tax in Britain: "We should stop bashing wealth creation - such talk is absolute nonsense."

The Con-Dems won't control these huge companies - they are parties of big business. "It's called capitalism" - a system of production for profit and the capitalists will take as much as they can get away with.

We demand that these companies and the super-rich who own and run them should pay their tax and more - they could pay off the deficit tomorrow.

But only by nationalising these companies under democratic workers' control and management will we be able to harness their wealth-producing power to meet peoples' needs and end this economic madness where our jobs, education and futures have to be sacrificed to line the pockets of the super-rich.

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In The Socialist 22 May 2013:


Fight the bedroom tax

End this 'evil bedroom tax'

Anti-bedroom tax federation launched in Merseyside

Bedroom tax campaigning in Leytonstone, Birmingham and Newham


Socialist Party news and analysis

Tories in turmoil over Europe

Big business tax avoidance scandal

Another blow for workfare

NHS staff under the cuts cosh

Them & Us


Socialist Party feature

Fighting cuts in wales


International socialist news and analysis

South African economy: Mass sacking threat demands mass action

Sri Lanka: Isolate the murderous Rajapaksa regime


Socialist Party reports and campaigns

Southampton TUSC rally

Anti-blacklisting campaigner run over

University backs down: students and workers win!

Support for Mid Yorkshire Health struggle in the Mirror

Strike against legal aid cuts

March against the G8

London Socialist Party regional conference


Socialist Party workplace news

Fighting back pays off: Thera East Midlands forced to make concessions

POA conference - Prisons should not be run for profit

Support Carling brewery workers at Burton-on-Trent

Sacked Tesco drivers on the march again

PCS members fight Land Registry privatisation

Firefighters prepare for pensions battle

Workplace news in brief


Readers' comments

Cuts kill: Con-Dem benefit 'reforms', mental health and suicide

Why I joined the socialists


 

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Related links:

Tax:

triangleShell pays 0 corporation tax, and plans huge hike in fossil output

triangleWhat strategy can end the retail jobs massacre?

triangleBuild a working-class movement to force an election

triangleTake the wealth off the super-rich

Big business:

triangleLow Pay, Long Hours. Bosses rip us off. Organise the fightback now!

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triangleTony Blair launches manifesto to sabotage a Corbyn government

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Fat cats:

trianglePrivatisers sue NHS - kick out the fat cats and fully nationalise our health service!

triangle'Fat Cat Friday' shows where all the money's gone

Britain:

triangleBristol South Socialist Party: How will the class struggle unfold in Britain?

Capitalism:

triangleBristol South Socialist Party: Capitalism and the food industry

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