comment by Cal Neva (U11544)
posted 3 minutes ago
There is a move to make companies pay their fair share of tax in countries where they do business and that is right imo.
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comment by Jenius99 (U4918)
posted 6 minutes ago
Now while keeping jobs is obviously good, who do you think will pick up the bill for the lost billions in corporation tax? (Something we should be increasing not losing out on more of)
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The problem is not the level of corporate tax. Its collecting any tax at all! Multi-Nationals are now moving profits around so that they declare profits in countries where their level of operation is much lower, only to benefit from low tax rates of that country.

This has been true of the EU for years. Its why Ireland used to have such low tax rates and and why so many companies HQ in Dublin. After the new tax ruling declaring that Ireland shouldn't gain an advantage of doing this its far more likely that companies aren't going declare full profits in any EU country.
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While that's true I certainly don't think the answer is split away and pimp the country out as a tax haven. More unity by the worlds most powerful trading blocs is the only way to reign in corporate tax avoidance and I just don't trust this Tory government to do anything but give big business a free ride while the average UK citizen picks up the bill.

comment by Scruttocks (U19684)
posted 1 minute ago
comment by Jenius99 (U4918)
posted 6 minutes ago
Now while keeping jobs is obviously good, who do you think will pick up the bill for the lost billions in corporation tax? (Something we should be increasing not losing out on more of)
----------------------------------------

The problem is not the level of corporate tax. Its collecting any tax at all! Multi-Nationals are now moving profits around so that they declare profits in countries where their level of operation is much lower, only to benefit from low tax rates of that country.

This has been true of the EU for years. Its why Ireland used to have such low tax rates and and why so many companies HQ in Dublin. After the new tax ruling declaring that Ireland shouldn't gain an advantage of doing this its far more likely that companies aren't going declare full profits in any EU country.
----------------------------------------------------------------------
While that's true I certainly don't think the answer is split away and pimp the country out as a tax haven. More unity by the worlds most powerful trading blocs is the only way to reign in corporate tax avoidance and I just don't trust this Tory government to do anything but give big business a free ride while the average UK citizen picks up the bill.
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Of course why voting for a better government becomes all the more important. Which is why I have such frustration with the Labour party at the moment.

My world view is that globalisation has been so fast that the need for 'trading blocks' is now almost antiquated by comparison. At one time they provided growth but now are protectionist and and a hindrance to growth. China has shown the world how to do business in the modern world. You literally have to go out and do as many deals as quickly as possible.

comment by Jenius99 (U4918)
posted 5 minutes ago
comment by Scruttocks (U19684)
posted 1 minute ago
comment by Jenius99 (U4918)
posted 6 minutes ago
Now while keeping jobs is obviously good, who do you think will pick up the bill for the lost billions in corporation tax? (Something we should be increasing not losing out on more of)
----------------------------------------

The problem is not the level of corporate tax. Its collecting any tax at all! Multi-Nationals are now moving profits around so that they declare profits in countries where their level of operation is much lower, only to benefit from low tax rates of that country.

This has been true of the EU for years. Its why Ireland used to have such low tax rates and and why so many companies HQ in Dublin. After the new tax ruling declaring that Ireland shouldn't gain an advantage of doing this its far more likely that companies aren't going declare full profits in any EU country.
----------------------------------------------------------------------
While that's true I certainly don't think the answer is split away and pimp the country out as a tax haven. More unity by the worlds most powerful trading blocs is the only way to reign in corporate tax avoidance and I just don't trust this Tory government to do anything but give big business a free ride while the average UK citizen picks up the bill.
----------------------------------------------------------------------

Of course why voting for a better government becomes all the more important. Which is why I have such frustration with the Labour party at the moment.

My world view is that globalisation has been so fast that the need for 'trading blocks' is now almost antiquated by comparison. At one time they provided growth but now are protectionist and and a hindrance to growth. China has shown the world how to do business in the modern world. You literally have to go out and do as many deals as quickly as possible.
----------------------------------------------------------------------
I deal with China and I don't think European countries can learn that much from their approach. They have deals to export but actively ban the import of pretty much anything but raw materials, there's not much room for more than one Chinese model.

Agree on the Labour frustrations and IMO they'd stand little chance of winning an election even with a set of perfect policies and charming figureheads. The country is too fractured and the voting majority too easily manipulated by their misguided anger to vote in their own interests.

Comment deleted by Site Moderator

We have taken a leaf out of China and Germany's book already.

They love keeping their currencies devalued to maximise their exports.

comment by HRH King Ledley (U20095)
posted 22 minutes ago
We have taken a leaf out of China and Germany's book already.

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China I agree with as they peg their currency at a false level.

Germany - nah..

Being part of the Euro, with much weaker economies tied to it, does not keep their currency artificially low?

Nope, the Euro is freely traded, so there's nothing artificial about its level.

Not all EU countries adopt the euro anyway.

Comment deleted by Site Moderator

Bit of conjecture there, unless you have some firm facts as to why that would be.

Comment deleted by Site Moderator

Go on then.. share that non conjecture..

Comment deleted by Site Moderator

Floor is yours Cal to bring forth those firm facts.

Facts are facts, doesn't matter what you or I think saan.

Its a simple business cycle. High growth ----> increased demand-----> rise in wage price inflation ------> increased interest rates -----> Stronger currency.

Pretty basic economics.

Comment deleted by Site Moderator

Come on Cal, out with the facts or even a case study with Germany stating they would be less competitive if they traded in Deutschmarks.

Germany has definitely benefitted from keeping its Euro using neighbours under the water to keep itself above. Having fixed interest rates with the rest of the Euro zone while having a markedly stronger economy can only be a good thing for Germany.

Comment deleted by Site Moderator

Germany is the Ying to Greece's yang.

Greece 'benefitted' (I use this term very loosely) from the stronger borrowing platform of the Euro, despite their economy not being at that level.

On the flipside, Germany benefitted from their currency not getting too strong, hurting exports, by the weaker performance of other countries in the Eurozone.

Comment deleted by Site Moderator

Simple fact is the euro is freely traded. The Chinese currency is artificially pegged.

Comment deleted by Site Moderator

The Euro is freely traded, but Germany's currency is indirectly pegged by being shared with economies of vastly differing strengths.