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Article

14 Nov 2016

Author:
Sasja Beslik, Nordea on Guardian (UK)

Corporate tax avoidance negatively impacts consumer base as govts. have less income to invest in public, says finance expert

"Companies should be forced to say how much tax they pay and where", 11 Nov 2016

National governments have raced to the bottom when it comes to tax – each vying for a few more jobs and a little more investment in their country. And yet those jobs and that investment come at a cost...The economy becomes ever more reliant on big corporations for jobs and investment...There are fewer possibilities for governments to invest in people.  Governments are getting less tax than they should. That means less spent on health, infrastructure, benefits and education. Society doesn’t develop and sooner or later the big corporation will move to somewhere where people have more developed skills...Leaving countries in much worse shape without local enterprise and an out of date skills base....Tax avoidance may create a temporary bump in share value...but it depletes the long term customer base...Healthy societies are ones where the re-distributive element of tax works well. Taxation improves the lot of everyone while maintaining incentives for people to do well. And healthy societies have more people able to buy goods and services. In short a bigger customer base. If companies don’t pay tax they destroy their customer base...[Refers to Alphabet, Amazon, Apple]