Wednesday, November 16, 2011

Whats Changed ** Number 1 Tax Avoidance **

Sorry about change of direction of Midwest Horse but it is something I wanted to say

Tax Avoidance by Corporations and Large Companies


For as long as there have been taxes Corporations have employed accountants and lawyers to find Tax Loopholes, that is what big business has always done and will always do.

How it's worked up till the last 20 years or so in America and around the rest of the world

1. A way of paying less tax is found by corporations
2. Corporations use the tax loophole to pay less tax
3. The tax authorities spend the next two years working with the elected government to close the loophole
4. 2 years later a Bi-Partisan supported bill closes the loophole
5. It starts all over again

What's Changed


Over the last 20 to 30 years the number of lobbying firms and lobbyists representing big business has  increased in Washington and State Capitals with the sole purpose of buying influence in the corridors of power and stopping bills passing that affect companies bottom lines ( I.E. Profit ) .




Just one of the consequences has been the slowing down of closing Tax Loopholes allowing more and wider ranging tax Avoidance.


Most of the gains over the last few years for large multi nationals tax avoidance is to use multiple offshore corps and shell companies to push profit around the world to the lowest tax countries and end up Earning Multiple Billions of Dollars in profits in some of the smallest countries in the world.


The Effect on the working man and woman.
When any section of society pays less tax ( In this case big business ) other sections of society need to pay more taxes in the form of sales taxes, property taxes, Income taxes, Gas Taxes, Beer Taxes etc. etc. 




This is the first in a series of posts highlighting the changes as I see them let me know what you think


Steve
   

5 comments:

Redneck Geologist said...

I look forward to your posts!

samihob said...

Great equestrian blog! Why not come over to http://hay-net.co.uk/ and post your blog there too at this Equine Social Blogging Network!

IanH said...

I know where I would go, if I didn't pay what is owed! Great post/rant. It's too bad there has to be two sets of rules.

John and Regina Zdravich said...

What you are touching on is at the heart of the "Occupy" movement. Looking forward to the conversation....

The People History said...

Thanks for the feedback,

I plan to post a Whats Changed every two days.

The next is scheduled for tomorrow

Steve