Socialist Worker

Government bows to business

Issue No. 1696

Government bows to business

More tax handouts for big corporations

THE government has handed hundreds of millions of pounds to multinational corporations by allowing them to continue fiddling their tax. Major companies like Rupert Murdoch's News International avoid paying tax on their vast wealth through a series of scams. Gordon Brown proposed mild changes to close some of these "loopholes" which saw companies avoid paying much of the tax due on their profits from abroad.

The move infuriated big business. Chief executives and directors bombarded the government with outraged demands for profits to be left alone. New Labour has now caved in, and put off implementing the new tax rules. The government believes the delay will mean �300 million in lost taxes. But, according to the Financial Times, "Business says the impact will be much greater, with some accountants putting the cost at billions of pounds."

We will all pay the price in lost services or higher taxes on ordinary people so that fat cats and parasites can cream off money and not pay a penny in tax.


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Article information

News
Sat 13 May 2000, 00:00 BST
Issue No. 1696
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