I don’t mind paying tax
That might sound odd to many, but living in Australia I like the benefits paying my tax brings.
I have public health that works – when my son had a nasty attack of croup when young we had paramedics arrive within minutes and the hospital was exceptional in their care and attention.
All courtesy of Tax.
In a society that historically looks after the less fortunate as one would look after your mate, tax is the thing that allows that to happen.
Think of it as distributed “mateship” 😀
We also benefit from a public school system that on the whole does an excellent job of education – my son attends the local public High School and it is doing a fine job of making him learn, and more importantly think.
Businesses and Tax
Businesses and Global companies currently seem to be doing a great job of avoiding paying any tax at all – and complaining bitterly if they do.
Most of them claim they want “political stability” an “educated workforce” with the “skills to grow their business” as key to where they will locate their operations.
Hmmmm, know what provides those things they want? Generally Governments via funding supported by taxable income. I see very few companies running universities training the graduates they require for engineering, commerce, PR or HR.
So to me it seems like businesses appear that they do not want to contribute to help provide the things they say that they want? I have a sneaking suspicion that you would hear Facebook, Apple, Google and similar screaming very loudly if they suddenly couldn’t find any programmers because none were trained as the Universities folded due to lack of funding.
Why is it happening
It’s my very simplistic view it’s because currently global laws are different country to country and smart lawyers and accountants have found ways to let the companies “shop around” to find the lowest (or no) tax approach.
Secondly in some countries they literally buy the government – looking at you America at present and Australia’s policical donations policies.
It appears that the big finance advisors are doing a great job of informing many how to minimise tax with “Double Irish Dutch sandwich” double speak and similar – it almost looks like their could be collusion… surely not.
Is More Collusion the answer?
I was having a random thought while walking the dog, as you do, and wondered what if all Governments took a leaf out of the “Companies Book” and globally colluded on minimum Tax Rates and approaches.
Something simple like 25% of all profits made by any entity in any country is paid in tax in that country – doesn’t matter if it is an arm of a multinational, you pay locally on what you make locally.
And a few riders on inter business entity loan interest rates while we are at it along the lines of loans to be sourced from local finance institutions if possible in the first instance. If not, then there better be a VERY good reason for interest rates to be higher than best current global commercial rates…..
Not suggesting for a moment that anyone drop tax rates if they are higher (go Norway) but that Governments collude and put a brick under the minimum rate globally so we (and companies) get the services, stability, skills and societies we say we want.
If it’s the same minimum everywhere it would have the potential to stop the shopping around and many of the constant complaints of “it’s lower in Singapore, Ireland, Holland, Panama, etc”
Nothing comes for free, and tax is what we currently choose to fund those things that keep society functioning, so how about more companies actually contribute to help support those things they say they want delivered.