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Another Day, Another Tax Cut for the Obscenely Rich

February 22, 2011

I’m going to stop watching Newsnight because it is starting to give me nightmares.

Another day, another explanation of ways Osborne is allowing mega-companies to avoid tax legally. Osborne’s theory is that big business = growth. Of course, it does not. Big business = happy friends of the Conservative party.

The only thing that will grow is profit. Something a government only benefits from if it taxes from the profit. The reason businesses will find the UK an even more comfortable base is precisely because they will be able to keep all their wealth to themselves.

Businesses need employees and the more British employees they can have, the better. But multi-nationals based in the UK were never going to relocate (Barclarys is based here and still only paid 1% tax on profits with the current tax rules) and new multi-nationals are unlikely to engage in job creation in a country with a minimum wage and generally higher salaries for blue collar work.

Alternatively more businesses might choose to  manufacture things here, which is good for the economy. But if multi-nationals only have to pay full tax on their UK operations they will be just move manufacturing abroad, leaving a head office registered in the UK. Great for bankers and traders but bad news for factory workers.

The IMF says the best way to improve the economy is a targeted transfer of economic power to the poor. Osborne is engaging in a targeted transfer of even more economic power to the rich. They say it will only cost the country £100m. They are liars – this is a wild underestimate considering these companies combines makes tens of BILLIONS of pounds in profit every year. It is sickening. And it passed with almost no comment.

After watching Newsnight, I searched high, I searched low, but couldn’t find any coverage of yet another Coalition mess-up. Maybe there has been so many we’re all suffering from stupidity fatigue.

If businesses are attracted to the UK because taxes are low, it will not reverse the deficit in the drastic way the Coalition keep saying it needs to be turned around. Osborne is doing the fiscal equivalent of opening his house up to tenants, rent free, because he wants more custom than the people next door.

He's saying to the treasury: "want some of this?"

The coalition worships money, the acquisition of money and the hoarding of money. They don’t believe in public investment, only private, and will stop at nothing until they have maximised tax receipts from ordinary people, whilst minimising tax receipts from the wealthiest in society.

The sooner Ed Miliband shows his face and starts telling the coalition about themselves, the better, because I’m pretty sure they don’t pay attention to  bloggers.

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