UK Guardian: Starbucks, Google and Amazon in the press for paying no UK taxes

The press in the UK has seized the issue of the large corporation paying little or no taxes in the United Kingdom.

Here is a story about Members of Parliament requesting action on tax avoidance.  In the UK Guardian. According to the story Starbucks paid no UK taxes in the past three years and paid only 8.6 million pound in UK taxes on sales of 3.1 Billion.  A rate of 0.28% or about a quarter of 1%.

Which tax havens do the top 100 US companies use

Every wonder which countries the Fortune 100 use for the tax shelters ?  Well the government already knows.  Here is a report from the GAO that lists which countries helped the Fortune 100 avoid taxes. It also lists the countries used by the top 100 government contractors.

The report from the GAO in 2009 is here. GOA Tax Shelter Report.  It list which countries are used by which companies to avoid paying US taxes.

The financial industry was the leader in the number of tax shelter companies followed by the pharmaceutical and high-tech industries.  Both industries transfer their patents or other assets to low tax jurisdictions and then collect royalties.  They also earn profits outside the US and then use the money for overseas investments.

NY Times: Poverty in Japan

New York Times to the rescue always. I was looking for something on poverty in Japan.  I was trying to find a developed post-industrial country comparable to the US which may have followed an economic route similar to us and has a aging population.  It does not look good for the US. 

Poverty in Japan.

Is their a "Real" Skills Gap in Manufacturing ?

I came across this publication from the Manufacturing Institute describing a skills gap in manufacturing in the united states.  Skills Gap in Manufacturing.

I have a lot of problems with the report.  1) It seems totally self-serving.  The manufacturing industry wants better skilled employees, but does not want to pay any more money in wages or benefits. 2) They want federal, state and local governments to pay for closing the gap.3) Proposes the manufacturing industry do little or nothing different to close the gap.

We realize manufacturers are in a very tight bind between off shore price pressure and low domestic demand. However, we would propose more internal cross-training and job flexibility along with employee ownership, not just outsourcing the problem to the government.

37% do not collect unemployment benefits

USA today has a story on uncollected unemployment benefits.

USA Today Story is Here. 

Fix the Debt: Simpson - Bowles Plan

Fix the Debt: Simpson - Bowles Plan

First, let us state that the US Debt discussion is a smoke screen to cut social spending and the government. Period. The real problem is lack of jobs.  It is purely and ideological augment over the size and scope of government.  The financial markets could careless and the same goes for consumers.


Given all that we like the Simpson Bowles plan. Many of the CEOs who visited the white house recently support the plan.  Simpson Bowles raises taxes oh the rich, cuts military spending and curbs social security and health care costs. It also taxes corporate gains at the same rate as income.

Here are some of the CEO's that support the plan. The CEO Council of Fix the Debt

Fix the Debt 
Moment of Truth

You can Google Simpson Bowles at "National Commission on Fiscal Responsibility and Reform" oe read more here.

While not directly criticizing the plan the IPS, The Institute for Policy Studies has a counter argument here. 

Finally, we are opposed to a territorial tax which would let companies bring revenue's back to the United States without paying taxes when the revenue is taxed overseas. Foreign taxes and US taxes are part of the cost of doing business.

NY Times: Corporate Subsidies

The New York times has a series on government subsidies for corporations. How taxpayers bankroll business.  The series took 10 months of analysis and reporting

Very deep, well researched and though provoking amount of quality journalism.