Yesterday I posted about beggar my neighbour and why the Ireland/Apple tax case matters for democracy and stability. Today Amazon and Starbucks are he focus of attention. These are two more in a very long list that will also include Google, Vodafone. Microsoft and many others who use their global clout to minimise regulation and taxation.
What was amusing is the posts on social media by neo-cons about the companies being justified because the governments waste money and so they should keep avoiding the tax.
What do governments spend their money on? A lot of it is social security and a lot of that is pensions (much more than unemployment in the UK). So shall we cut pensions because Amazon and Starbucks don't pay up? Should those Daily Mail reading baby boomers who support the neo-con illusion get shafted by their own stupidity? Should we allow them to poke themselves in the eye? Sounds good to me but maybe not.
What else does the government pay for? Healthcare is a big spend as well. We could allow Amazon and Starbucks to use their tax avoided cash to invest in sponsored hospitals and to reproduce the philanthropy of Carnegie or Rockerfeller. Look at Oracle and the billions of Larry Ellison as an example he used all that cash to build - the most expensive racing yacht in history. So maybe expecting billionaires to give away their money is not such a good idea (I know Bill Gates has done amazing things and George Lucas and Warren Buffett as well but they do not run countries).
The government also spends money on defence. From an evidence based view this is often a waste of money and the social media post is correct. Britain is building two stupid carriers to fight the types of war that no longer exist against enemies that are no longer there. We are about the renew nuclear weapons that nobody will ever use and that are also a waste of time. Oddly enough I suspect that the person who made the media post would say that this is NOT a waste of government money as the neo-cons are easily deceived by Eisenhower's military industrial complex that sells what nobody needs at an extortionate price.
Then there is education. We could all do with a lot less of that so that we can all be as stupid as the Daily Mail readers and the neo-con social media enthusiasts. That keeps people from questioning. Yes you need to train an elite to run your business and keep globalisation going but an ignorant population is good for business.
What about the infrastructure paid for by taxes? The roads etc. Well there is lots of mis-mangement of funds there, but is is caused by the neo-con push to privatise all services and to have the market find the best price. Just ask Halliburton how this works for them in the US and ask any local government how it has worked out in the UK. Higher price poorer service and don't mention PPI.
So yes Amazon, Starbucks etc. should be paying taxes and while sometimes government does waste money it is a lot better than the alternative.