The 1% aren’t playing their part: that’s for sure.
If countries are to get through austerity without social and democratic breakdown there’s no doubt at all that tax haven abuse has not just to be curtailed, but ended. I and the Tax Justice Network have argued for a long time that tax havens are a coordinated assault on western democracy. I think the evidence that this is the case is growing steadily.
This is his informed comment after reading a piece showing that Spanish corporate income tax collections are falling.
Here is the reality, from the original source piece.
That the companies have continued posting profits at all is largely thanks to earnings abroad, but as foreign profits are generally taxed where they are made, Spain\’s coffers have seen less and less.
Rather a different story really, isn\’t it?
Take, as an example, Inditex (Zara etc). Spanish stores are bombed out in a bombed out economy. Not much profit there. UK stores are going alright, German ones going gangbusters. But profits from UK stores go to UK Treasury, Angela M gets to decide how the taxes from the German stores get spent. There is no mystery here.
It\’s just that the Spanish economy is shot and the overseas operations of Spanish multinationals get taxed overseas.