2014 January 08 « Dr Alf's Blog

HM Revenue & Customs (Photo credit: jam_90s)

The words “could face” give the game away.

Google will face next to nothing and even if they are made to pay something more to HMRC all they will do is get rid of some people and the taxpayer will end up paying their dole and will save nothing.

Dr Alf’s solution of giving HMRC more clout and resources will not work either because the multinationals employ the best lawyers and accountants and can run rings round HMRC or any of our Civil Servants who are not streetwise enough and far too predictable.

They are capable of going after “little people” like Avon ladies, taxi drivers, fish and chip shop owners and micro businesses which trade on the internet through UK registered websites.

When it comes to major multinationals like Amazon, Microsoft, Google, Vodaphone, Arcadia Group PLC, Virgin PLC, Arcelor Mittal, Eon, Glaxo SmithKline and others HMRC is a toothless paper tiger.

The solution is to have lower and flatter rates of corporation and personal tax which eliminate the need for tax evasion and encourage money held offshore to be brought back onshore.

Singapore manages this with stringent compliance and tax rates higher than those prevailing in the Dublin Financial District where Google bases its European operations and is poised by 2016 to be the 2nd global financial center whilst the City of London is relegated to 4th position.

The problem is tax rates which are too high in the UK, too much Government waste, an unaffordable public sector, far too many civil servants, too many lazy and unproductive people and malfeasance arising from the plundering of the public purse which has been going on for years.

John Gelmini

English: George Osborne MP, pictured speaking on the launch of the Conservative Party manifesto for the 2009 European Parliament elections, at Keele University. (805×1207 px, 283,711 bytes) (Photo credit: Wikipedia)

This is an excellent article by Simon Jenkins in the Guardian. It’s a MUST READ, in my view. Check it out!

George Osborne talks tough but acts like a Labour chancellor | Simon Jenkins | Comment is free | The Guardian.

Personally, I do not agree with George Osborne’s priorities. I think that Osborne has ignored evidence-based policy and played to ideology and short-term political gain, rather than what is in the nation’s best interests. Osborne has been light on serious reform, e.g., still throwing money at the NHS, rather than insisting on it’s scrapping and replacement with a World-class system of public health. I agree with Jenkins that the local authorities have been decimated, especially the poorer, Labour-led, authorities, who have been traditionally dependent on central government handouts. The local authorities have typically savaged front-line services, rather than take a strategic approach to cost reduction (take a look at what this blog was arguing up to three years ago).

For sure, whoever wins the next election, there will definitely be more cuts or increased taxation.

Here are two open questions:

What has George Osborne really done to increase private sector investment, exports and the nations skill base?

Where will the ax falling the next government?

Any thoughts?