So, err, what does that report say?
Businesses pay little or no Corporation Tax because, for example, they have made a loss, or had losses in previous years,…
Horrors, eh? Businesses which don\’t make profits don\’t pay profits taxes on those profits that they didn\’t make?
Quite scandalous I\’m sure you will agree.
Derivatives – in effect complex gambles – have been playing havoc with the global economy. According to the Bank for International Settlements (BIS) the face value of Over The Counter (OTC) derivatives is around $596tn and listed credit derivatives add up to another $548tn, making a total of $1,140tn. A 1% tax on this form of gambling can raise over $11tn a year and a fair chunk of that would accrue to the UK and the EU.
Umm, actually, the derivatives aren\’t "complex gambles". Credit Default Swaps, just as an example, are a form of insurance, not a form of gambling (to the extent that gambling and insurance are different things). They\’re also just about the only part of the credit markets that have been functioning and liquid in recent months.
Taxing them at 1% wouldn\’t raise $11 trillion either. It would raise nothing as it would destroy the market.