Reply to post: Re: Welcome to Cloud Cuckoo Land

Labour: Free British broadband for country if we win general election

Dave314159ggggdffsdds Silver badge

Re: Welcome to Cloud Cuckoo Land

"I hope we can all agree that Amazon should pay a fair rate of tax"

Well, no. Because businesses don't pay tax, people do. Those people are either tax resident in the UK, in which case they can be taxed on their income, or they are overseas, in which case their money is foreign direct investment - a good thing for the country as a whole and which therefore shouldn't be taxed.

The only reason we ever came up with the idea of taxing corporations was that it was more convenient (in the days of paper and adding machines) than to tax all the shareholders individually. Self-evidently it no longer works, so the insistence on perpetuating what we know empirically isn't a very good way of raising revenue says much about how politicians appeal to base prejudices.

In any case, the main reason Amazon pay little tax is that they don't make a profit due to reinvestment - which is exactly what we intended the tax structure to encourage. Either they're misguidedly flushing 100% of the money away on investments which will never pay off, in an effort to avoid ~25% tax, or they are in fact investing in growing the business and will pay more tax in future as a result.

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