PAYING TAXES INCREASINGLY LOOKS LIKE A GOVERNMENT SCAM – Before you read this article take a look at the video below and carefully watch Matt Brittin, Vice President of Sales and Operations, Google, and his reaction to the questions posed by Margaret Hodge, Chair, Public Accounts Committee.
You don’t have to watch the entire video, although it’s highly interesting, but rather just the first 2 minutes. Note carefully the smirk on his face; it is clear that Matt Brittin finds the whole committee little more than a circus played by clowns who can’t perform; which is the whole point of this article.
I have over the last couple of months written a number of articles on the debacle of corporate tax avoidance and one thing I have always made perfectly clear is that what the likes of Google, Amazon and Starbucks are doing is NOT illegal; immoral maybe but they are simply taking full advantage of the incompetence of those running Government.
Google, Amazon and Starbucks have avoided to pay hundreds of millions in corporate taxation for one very simply reason; we have morons running Government and they are simply incapable of understanding corporate business and even less able to create taxation laws that prevent any large foreign national conglomerate from avoiding paying tax.
Tax laws in the UK are written primarily by tax firms, such as KPMG; which again I have covered in other articles and this is where the problem lies. As Government Minister are completely clueless how to create tax legislation the only course of action is to pay tax experts to create such legislation who in turn then provide their clients with the loopholes on how to prevent paying any such tax levies.
I wondered, as I watched the video, just how much it cost the taxpayer for Government to put on this circus – you really ought to watch the whole episode and get your money’s worth because as a hard working taxpayer it is you who is picking up the bill for this public display of incompetence and it is clear for anyone to see that Matt Brittin is loving every moment in clearly showing what fools are running the Government.
The burden of tax rarely, if ever, falls on the large corporations; they can afford to hire the expensive tax advisers, who wrote the laws, to uncover the loopholes that allow them to avoid paying tax.
Consider that taxation has to come from somewhere; otherwise Government wouldn’t be able to pay for services, such as Education, Health Care or Welfare and worse not be able to award themselves vast salaries.
The burden of taxation therefore trickles down from Medium Size Business, Small Businesses and finally the working family and it is these three core points of taxation that in fact raise sufficient revenue to run the country.
It is irrelevant if the Government under-performs, as they regularly do, because they know that these three core elements of society can be taxed further as there is little or no escaping the rules of taxation.
Only recently have we seen the taxman targeting small and medium sized companies in order to squeeze every last penny form them. In the taxman’s desperation to find even more cash to prop up the ever wasteful system they then proceeded to target small member organisations and clubs.
Finally we have the working taxpayer who pays the most into the system and this comes from a number of taxes including Income Tax, National Insurance Tax, VAT, Road Tax and other Duties imposed on so-called ‘unessential items’ such as cigarettes and alcohol; but of course the high duties of taxes on these items are masked by the Government’s insistence that making them too expensive is actually good for you. This may be the case but it doesn’t alter the fact that Government is continuously finding new ways to raise taxation so that their incompetence can be paid for.
The Government, in their blindsided and incompetent measures is now talking about closing the taxation loopholes so that the likes of Google, Amazon and Starbucks will be forced to pay their fair share. I would love to have been a fly on the wall in the bar nearby where the executives of Google, Amazon and Starbucks no doubt got together after the public committee hearing to laugh about the show that was nothing more than public entertainment in uncovering more Government ineptness and stupidity.
No doubt they are waiting now for the tax experts to once again be called into Government to close the loopholes on which they will no doubt simply create others that no Government Ministers could possibly comprehend.
If Government was run in the same way the executives run Google it is certain that the UK wouldn’t have a massive public financial deficit and it surely wouldn’t be subjected to the EU raping its finances annually; but that will remain pure fantasy until the UK voter wakes up to the fact that those in power are not professionals and I would wager that most wouldn’t be able to get a job in McDonald’s if it were not for their Eton or Oxford school connections.
Think for a moment how we have been conned into paying taxes for services that are anything but adequate let alone exemplary. Just look at the vast sums of ‘road tax’ motorists are subjected to paying each year and yet it is widely acknowledged that the UK roads are some of the worst in Europe.
Our health care services are in even worse shape and the new 111 Hotline is a complete and utter disaster. Doctors and the Medical Administration Board continuously advised the Government to scrap the 111 Hotline during its trials due to mass public failure and yet despite qualified advice the Government spectacularly decided to ignore this and today we have a system that is basically responsible for killing hundreds of people and it’s only a few months old.
You have to wonder what we are actually paying taxes for and the answer is clear and unequivocal – we are paying taxes to pay the incompetent, the inept, the corrupt, those engaged in bribery and all the while we are forced, under legislation, to continue paying whatever they demand.
If I was to give you a credit card with unlimited spending how long do you think it would take before you started to abuse my generosity? It’s the same principle in Government and they continuously abuse what we pay in tax and therefore the conclusion has to be that taxation is nothing more than a Government scam.
Do you think we need professionals to run the country or are you happy with the Eaton and Oxford jet set? Leave your comments below.