Reeves targets Amazon’s tax evasion
Chancellor urged to address Amazon's minimal tax contributions
Rachel Reeves, in her conference speech, vowed to target those evading fair tax contributions. She urged the Chancellor to begin with companies like Amazon. Last year, the online retail giant earned £856 per second in the UK, yet only paid 3.45% of its turnover in tax.
Although current rules allow this, such tax minimisation by multinationals shifts the burden onto others and gives Amazon an undue edge, particularly when high streets are struggling against online competition.
As Ms Reeves prepares to present her first budget next month, she faces the challenge of addressing a £22bn deficit in public finances left by the Tories. Spending cuts and tax hikes are necessary measures.
Reeves conference speech is long on rhetoric but short on detail. Words loaded with sunshine but policies loaded with gloom. we see through the "broad strokes, no detail" wait for the budget next month. These people are miserable and gloomy. Remember… pic.twitter.com/jNjCVHA26j
— Critical thinker! (@TheGuestEdit) September 23, 2024
Already, winter fuel payments for millions of pensioners have been withdrawn. This could have been avoided if large corporations were stopped from using intricate accounting methods to reduce their tax obligations. The Labour government needs the resolve to tackle issues their Tory predecessors avoided.
The strain on NHS staff during the pandemic was starkly highlighted yesterday. Professor Kevin Fong, at the Covid Inquiry, described how overwhelmed healthcare workers were by the rising death toll.
Politicians responsible at the time should heed his testimony. It underscored not only the dedication of frontline workers but also criticised those who left the NHS unprepared and slow to act when the pandemic emerged.
Bushy Park in south west London hosted the first parkrun two decades ago. Today, over 2,000 parkruns take place in 23 countries. The event’s founders merit recognition for their achievement.
What Other Media Are Saying
- LSE Business Review examines how multinationals evade UK anti-tax avoidance regulations, highlighting ineffectiveness of reforms and corporate strategies to circumvent them, emphasizing international cooperation.(read more)
- Investopedia highlights how large corporations in the U.S. minimize taxes using strategies like accelerated depreciation, offshoring profits, and generous deductions for employee stock options, despite the statutory corporate tax rate being 21%.(read more)
- PIIE Charts expose how multinational companies manipulate internal prices and utilize low-tax jurisdictions to reduce their tax bills, despite proposed global minimum corporate tax efforts to curb such practices.(read more)
Frequently Asked Questions
Here are some common questions asked about this news
What did Rachel Reeves promise in her conference speech?
She promised to take action against those who do not pay their fair share in taxes.
How much did Amazon make per second in the UK last year?
Amazon made £856 per second in the UK last year.
What tax percentage did Amazon pay on its turnover?
Amazon paid just 3.45% of its turnover in tax.
Why has Rachel Reeves had to remove winter fuel payments from millions of pensioners?
She had to make spending cuts to fill the £22bn public finance gap.
How many parkruns are there now and in how many countries?
There are more than 2,000 parkruns in 23 countries.
