Google chairman Eric Schmidt defends tax avoidance policies
Source: The Guardian
Google's chairman, Eric Schmidt, has defended the search engine's tax avoidance policies, saying "we fully comply with the law" after paying just £6m in corporation tax in the UK.
Schmidt's comments drew a scathing response from a member of the parliamentary public accounts committee (PAC), who accused the company of treating tax payments as a "voluntary act".
In an interview with the BBC, Schmidt defended the fact that Google paid corporation tax of £6m in 2011 despite recording annual revenues of £2.5bn in Britain. He said: "You're describing the way taxes work globally. And the fact of the matter is these are the way taxes are done globally. The same is true for British firms operating in the US, for example."
Schmidt defended Google's tax affairs by pointing to the support that the company gives to startup businesses. He said: "We empower literally billions of pounds of startups through our advertising network and so forth. And we're a key part of the electronic commerce expansion of Britain, which is driving a lot of economic growth for the country. So from our perspective you have to look at it in totality."
Read more: http://www.guardian.co.uk/technology/2013/apr/22/google-eric-schmidt-tax-avoidance
onehandle
(51,122 posts)Doesn't even believe in his company's own product.
I suspect it has to do with Google's heinous data collecting scam. He wouldn't want his activity dispersed to the world, like Google services' users are.
SoapBox
(18,791 posts)Freddie Stubbs
(29,853 posts)adieu
(1,009 posts)they have the ability to have the ear of legislators to craft legislation that makes it favorable to the companies, unlike regular citizens. So basically, they craft a law so that what would have been illegal (paying less money) is now legal. Really no different than if I were to get a law passed that allows me to kill people with impunity, and then I go around killing people. "Hey, it's legal!"
What we're saying here is not that he's doing something illegal, because it is legal. What we're saying here is that he's cheating, which it is, because he (and his ilk) gets to muddy the legislative process that the rest of us are not allowed to do.
SamKnause
(13,043 posts)They always have some lame excuse as to why they should not be required to pay their fair share.
Until the collapse of the global economy I never really thought about the rich or elite much.
I had no reason to like or dislike them.
After much research and exposure to the subjects of corporate taxes, loopholes, subsidies, offshore accounts and the weight of political power they have, I have formed an opinion.
I have disdain and contempt for those who feel they are doing the world a favor just by existing.
harmonicon
(12,008 posts)Do you cut an extra cheque to the IRS every year, "just because," or do you pay what you're legally required to pay? By not paying extra, do you feel disdain for yourself, or that you're doing the world a favor just by existing?
SamKnause
(13,043 posts)No, I do not cut an extra check.
I paid what I owed and was glad to do so.
No, I do not feel disdain for myself. I am not rich. I don't hoard money while others are homeless, hungry and without health care or jobs. I don't feel disdain for myself because I have empathy and sympathy for others.
In the past two elections I have voted to raise taxes for different issues 5 times. All of them passed. I was very pleased.
I also do not have the financial means and power to force a tax code that favors me as an individual.
I don't have lobbyist that I send to DC to represent me.
I don't have attorneys or organizations like ALEC that write the tax laws passed by our politicians.
I also do not have a pledge signed by politicians to not raise taxes for any reason.
The poor are not bribing our politicians to have the laws skewed in their favor.
It seems that you are quite comfortable with our politicians being puppets for the rich.
Difference of opinion or we don't see eye to eye.
Thanks for your input on the situation.
harmonicon
(12,008 posts)but I don't fault the rich for it, I fault the politicians. I can't blame someone for only paying the taxes they're legally obligated to pay.
SamKnause
(13,043 posts)I really do not understand your reasoning ?
Legally obligated to pay; You are trying to make it sound like they have zero influence or blame.
Do you agree our politicians are bought and paid for ?
Do you agree lobbyist have more power than individual citizens ?
Do you agree the playing field is not a level one ?
Do you think corporations are people ?
Are you aware that corporations now have all the rights of living breathing human beings and all the rights of corporations ?
How do you think they acquired all this power and all their rights?; Bribes, money laundering, insider trading, bank fraud; the list goes on and on.
It is really a vicious circle.
harmonicon
(12,008 posts)but pleading with someone who runs a business (a publicly traded business, which is - for crazy reasoning - legally obligated to maximize profit for shareholders) to campaign for something other than what is best for their business is crazy. Fault the legislators, not someone who's just doing their job.
SamKnause
(13,043 posts)We will just have to agree to disagree.
Hope you have a great day.
It is beautiful, sunny and warm here in Ohio. In the low 70's today and tomorrow; back to the 50's Wednesday.
Thanks for all your input.
Nye Bevan
(25,406 posts)If not, then perhaps the law should be changed. But why criticize Google for not paying more taxes than legally required? Do any DUers choose to do so?
harmonicon
(12,008 posts)I don't understand the misguided anger directed towards people, organizations, businesses, etc. when they just comply with laws written by legislatures.
Ash_F
(5,861 posts)...despite the will of an overwhelming majority of voters. Our democracy isn't working.
justhanginon
(3,287 posts)purchase our beloved lawmakers to pass laws that benefit the rich to the detriment of the rest of the citizens. We continue to pick up the check for these selfish corporate people that continue to game the system. Unamerican at best, criminal at worst.
It is disgusting that we just had a candidate for the presidency of the United States that had hidden bank accounts all over the world and could not even release his latest tax returns for fear of what they would show.
That still angers me almost more than almost anything else. No moral character whatsoever and the nominee of the republican party. What arrogance!