Saturday, 5 April 2014

We're all in this together! (1)

The Conservatives' slogan The "Big Society" and "We're all in this together." Formed part of Cameron's first speech after the election. It was Wednesday 06 October 2010 when Mr Cameron said "This is not a cry for help, but a call to arms. Come on, let's pull together, Let's come together, Let's work together in the national interest. It's about government helping to build a nation of doers and go-getters. It is right that those with broader shoulders bore a larger share of the burden of reducing the deficit, and the Government would always aim to ensure measures to cut spending were fair."

So I thought I would observe things around me.  Just to see if we are 'all in this together.' To see if the load has been shouldered by everyone. To see if we have all actually played a part in sharing the burden. Helping to recover the country and improving everyone's living standards. After all as millionaire David Cameron says, we're all in this together, well we are - aren't we?
We were a nation of shopkeepers according to Napoleon. To a point his comment is true because it seems that we do enjoy shopping. However since the down turn we more and more everyone is looking for bargains. So on-line shopping has grown in vogue. 

Top of the list of popular on-line websites for shopping is Amazon. Amazon, saw $61 billion in world wide sales last year. Amazon has been valued at a net worth of $90 billion.  So what is Amazon doing to share its part of the burden. Amazon's £4.2bn annual sales in the UK, which rely on a network of eight mega-warehouses across Britain, are routed through Luxembourg. Tax structures used by Amazon allow Amazon to route billions of pounds from sales to British customers through Luxembourg and paying negligible UK tax.

But Amazon is doing nothing wrong other than from a moral standpoint which has no value in big businesses. After all, if you can't beat them, then join them. So the coalition government has been aggressively courting foreign multinationals by slashing the rate of corporation tax. But when a business like Amazon already has its tax arrangement in place - you pay almost no corporation tax anyway. 

Proving once and for all, we're all in this together!

While the government is acting like a rabbit in the headlights. Among those hoping the tax fiasco is fixed are non-international companies based in the UK. Which have become increasingly vocal in their attacks on the unfair tax advantages afforded to multinationals. Some of Britain's largest high-street chains including Sainsbury's, John Lewis, Dixons and Mothercare have all called for a crackdown on Amazon's tax arrangements. 

However, it is the politicians themselves who are responsible for this state of affairs by creating a tax system which is hugely complicated and open to being exploited. The only solution to this is to create a simpler, fairer and more competitive tax system.

But it's your pound and it's in your pocket. The government are seemingly frightened of the wealthy multinationals, will do nothing. So can you find another supplier other than the tax avoiders to make your purchases.

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