This comes from the Huffington Post this morning, and is US focussed:
When big corporations use offshore tax havens, small businesses pay the price -- literally. If they were to cover the cost of corporate abuse of tax havens in 2011, the average U.S. small business would pay $2,116, according to a report released Tuesday by consumer group U.S. PIRG. The estimate is based on Census numbers for businesses with fewer than 100 employees.
"When corporations shirk their tax burden by shifting profits legitimately made in the United States to offshore tax havens like the Caymans, the rest of us must pick up the tab through either cuts to public spending priorities, higher taxes, or more debt," Dan Smith, tax and budget associate for U.S. PIRG and one of the report's co-authors, said in a statement. "Responsible small businesses are further hurt by corporate tax dodging because they are put at a competitive disadvantage since they can't hire armies of well paid lawyers and accountants to use offshore tax loopholes."
It is an argument I have long made.
It's also right.
What baffles me is why small business is not campaigning against the tax breaks big business is given to undermine their smaller competitors.
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For years I have argued that there are two sets of rules in business, one for big business and one for small businesses.
But how do you start a campaign?
The ICAEW should be doing it….
Richard
Yes they should but they never will because of big firm influence.
OK, so what next?
Are we going to have to do the ‘Straight Accountant’s Network’?
Or the ‘Accountant’s who’ll let you sleep at night Network’?
Both at least partly seriously
I suspect it’s the same reason as lots of low-earning people (especially in the US) support the party that wants to cut taxes on rich people: everyone’s labouring under the illusion that one day, they’ll be one of those rich guys and when that happens, there’s no way they want to pay 50% tax (or 40, or 30).
Of course only a small percentage of people/small businesses will ever make that transition but people will insist on dreaming…
I think they’re not bothered because they aren’t paying their fair share of taxes either.
Incorporation for what used to be called the self-employed has enabled many small businesses to partially avoid tax and completely avoid NI. And all completely legal above board and encouraged by former New Labour treasury ministers.
After incorporation there is evasion which works a bit like avoidance. It’s just that evasion is cheaper to implement than avoidance but comes with more severe penalties in the improbable event of being caught.