Eric Schmidt: "I'm proud of our tax avoidance scheme...it's called capitalism"

[muyuu]

Fuck yea.

http://www.belfasttelegraph.co.uk/news/local-national/uk/google-boss-eric-schmidt-im-proud-of-our-tax-avoidance-schemeits-called-capitalism-16249970.html

The head of the internet giant Google has defiantly defended his company’s tax avoidance strategy claiming he was “proud” of the steps it had taken to cut its tax bill which were just “capitalism”.

In an interview in New York Eric Schmidt, Google’s Chairman, confirmed the company had no intention of paying more to the UK exchequer. Documents filed last month show that Google generated around £2.5 billion in UK sales last year but paid just £6m in corporation tax.

The Californian based search giant has also been revealed to have sheltered nearly $10bn of its revenues in Bermuda allowing it to avoid some $2bn in worldwide income taxes in 2011.

But Mr Schmidt said such schemes were legitimate and the company paid taxes “in the legally prescribed ways”.

“I am very proud of the structure that we set up. We did it based on the incentives that the governments offered us to operate,” he said.

The Silicon Valley boss went on to suggest that Google would not turn down the opportunity to draw on the big savings allowed under the law in the countries it operates in: “It’s called capitalism. We are proudly capitalistic. I’m not confused about this.”

He also ruled out following Starbucks in voluntarily handing more money over to the UK Government.

“There are lots of benefits to [being in Britain],” he said.

“It's very good for us, but to go back to shareholders and say, 'We looked at 200 countries but felt sorry for those British people so we want to [pay them more]', there is probably some law against doing that.”

Mr Schmidt’s defiant stance is unlikely to find favour on either side of the Atlantic with both the American and European Governments searching to find ways of forcing “stateless” internet companies such as Google to pay more tax.

The issue will be raised by George Osborne when Britain takes over the chairmanship of the G8 and will also be investigated by the Organisation for Economic Co-operation and Development (OECD).

Last week the Chancellor said he was committed to “leading the international effort” to prevent international companies transferring profits away from major economies, including Britain, to tax havens.

“We will put more resources into ensuring multi-national companies pay their proper share of taxes,” he said. “With Germany and now France, we have asked the OECD to take this work forward and we will make it an important priority of our G8 Presidency next year.”

Tonight Margaret Hodge, chairman of the powerful House of Commons Public Accounts Committee, which recently cross examined Google UK on its tax affairs said Mr Schmidt should be ashamed rather than proud of his company’s tax bill

“For Eric Schmidt to say that he is ‘proud’ of his company’s approach to paying tax is arrogant, out of touch and an insult to his customers here in the UK,” she said.

“Ordinary people who pay their taxes unquestioningly are sick and tired of seeing hugely profitable global companies like Google use every trick in the book to get out of contributing their fair share.

Google should recognise its obligations to countries like the UK from which it derives such huge benefits, and pay proper corporation tax on the profits it makes from economic activity here. It should be ashamed, not proud, to do anything less. ”

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[Rudd-O]

Tax avoidance = "we wanted to steal more money from them, but they outsmarted us by using the very law we use to excuse our theft"

Lol

[hazek]

Good! The less money they get robbed for, the better! 

[Anon136]

i know these guys are in bed with the cia and all but is it just me or does it seem as if they do so much more good than harm on net. Just the other day they had a petition against some new internet censorship bill right on google.com main page. Perhaps the elites are beginning to lose control of what used to be their machine? Or put differently the states emulation of capitalism is, despite the states best efforts, breaking free of its bonds and becoming real capitalism.

[gusti]

Tax haven competition is good for keeping taxes lower in other countries.

[Foxpup]

He's got a good point about the shareholders. Corporations are indeed legally obligated to not waste their shareholders' money, so it may very well be illegal for them to not take advantage of any tax loopholes they can find. I wonder how Starbucks's shareholders are reacting...

[Lethn]

The 'stateless' I like the sound of that.

[Charlie Prime]

Tax haven competition is good for keeping taxes lower in other countries.

And American states.  Witness the capital flight from California to Texas.

[SgtSpike]

He's got a good point about the shareholders. Corporations are indeed legally obligated to not waste their shareholders' money, so it may very well be illegal for them to not take advantage of any tax loopholes they can find. I wonder how Starbucks's shareholders are reacting...

Agreed.

For governments, there IS a simple solution for this: Make the tax code 1 page instead of 3000.

Tax haven competition is good for keeping taxes lower in other countries.

And American states.  Witness the capital flight from California to Texas.

Yet somehow, many people still don't think high taxes damage the economy...

[amagimetals]

It always comes down to this: incentives matter.

[myrkul]

It always comes down to this: incentives matter.

Yes. So many people forget this. It's the most basic law of economics, but all too often, it's simply ignored.

[TECSHARE]

i know these guys are in bed with the cia and all but is it just me or does it seem as if they do so much more good than harm on net. Just the other day they had a petition against some new internet censorship bill right on google.com main page. Perhaps the elites are beginning to lose control of what used to be their machine? Or put differently the states emulation of capitalism is, despite the states best efforts, breaking free of its bonds and becoming real capitalism.

Any good propaganda has a seed of truth, otherwise no one would be convinced by it. This "breaking of the bonds" is a controlled event long planned for, and they have a new and improved set of chains waiting for you on the other side. All you have to do is click accept.



As far as the OP subject matter, as a regular every day person try walking into the IRS and telling them that. See how fast they repo everything but your dirty drawers. As an individual I believe this is a healthy mindset, the economy crushes individuals and small businesses and ANY advantage should be taken. IMO commercial entities, especially those that have a monopoly on an industry have a special responsibility to pay their fair share so YOU AND I don't have to pay ours AND THEIRS. Believe me, currently we pay so companies like google don't have to.

[Anon136]

i know these guys are in bed with the cia and all but is it just me or does it seem as if they do so much more good than harm on net. Just the other day they had a petition against some new internet censorship bill right on google.com main page. Perhaps the elites are beginning to lose control of what used to be their machine? Or put differently the states emulation of capitalism is, despite the states best efforts, breaking free of its bonds and becoming real capitalism.

Any good propaganda has a seed of truth, otherwise no one would be convinced by it. This "breaking of the bonds" is a controlled event long planned for, and they have a new and improved set of chains waiting for you on the other side. All you have to do is click accept.



As far as the OP subject matter, as a regular every day person try walking into the IRS and telling them that. See how fast they repo everything but your dirty drawers. As an individual I believe this is a healthy mindset, the economy crushes individuals and small businesses and ANY advantage should be taken. IMO commercial entities, especially those that have a monopoly on an industry have a special responsibility to pay their fair share so YOU AND I don't have to pay ours AND THEIRS. Believe me, currently we pay so companies like google don't have to.

If i want two candy bars and the guy next to me wants one candy bar he pays half as much as me, he pays his fair share. The market is where people pay their fair share. If i drive on a private road twice as often as joe i pay twice as much as joe, this is my fair share. Government is the place where people who don't use the roads at all pay 1000 times as much for the roads as some other people who use them all the time. Government is the only place where things get wacky and some people pay amounts that are not fair. Taxation isnt paying your fair share, paying your fair share is paying your fair share, donating to a charity is paying your fair share, donating towards the building of a road is paying your fair share. taxation is the use of violence to force other people to pay what you believe is their fair share to the people you believe they owe it to.

[Dalkore]

It always comes down to this: incentives matter.

Yes. So many people forget this. It's the most basic law of economics, but all too often, it's simply ignored.

He is correct on this.   We should incentivize companies to pay a fair tax and create domestic jobs for the nation they are headquartered in.  They have gain a significant advantage being able to pool capital as a corporation.  With this advantage, they should contribute to the general welfare of that country.  If not then it is acting like a parasite.   There is no free lunch.

[myrkul]

With this advantage, they should contribute to the general welfare of that country.  

How do you think those companies get their money?

[amagimetals]

It always comes down to this: incentives matter.

Yes. So many people forget this. It's the most basic law of economics, but all too often, it's simply ignored.

He is correct on this.   We should incentivize companies to pay a fair tax and create domestic jobs for the nation they are headquartered in.  They have gain a significant advantage being able to pool capital as a corporation.  With this advantage, they should contribute to the general welfare of that country.  If not then it is acting like a parasite.   There is no free lunch.

This doesn't make any sense. People are people no matter what "country" they're living in. Who cares if a company contributes to the "general welfare" of people in another country, by investing or selling products there. Your suggestion just promotes nationalism.

[TECSHARE]

i know these guys are in bed with the cia and all but is it just me or does it seem as if they do so much more good than harm on net. Just the other day they had a petition against some new internet censorship bill right on google.com main page. Perhaps the elites are beginning to lose control of what used to be their machine? Or put differently the states emulation of capitalism is, despite the states best efforts, breaking free of its bonds and becoming real capitalism.

Any good propaganda has a seed of truth, otherwise no one would be convinced by it. This "breaking of the bonds" is a controlled event long planned for, and they have a new and improved set of chains waiting for you on the other side. All you have to do is click accept.



As far as the OP subject matter, as a regular every day person try walking into the IRS and telling them that. See how fast they repo everything but your dirty drawers. As an individual I believe this is a healthy mindset, the economy crushes individuals and small businesses and ANY advantage should be taken. IMO commercial entities, especially those that have a monopoly on an industry have a special responsibility to pay their fair share so YOU AND I don't have to pay ours AND THEIRS. Believe me, currently we pay so companies like google don't have to.

If i want two candy bars and the guy next to me wants one candy bar he pays half as much as me, he pays his fair share. The market is where people pay their fair share. If i drive on a private road twice as often as joe i pay twice as much as joe, this is my fair share. Government is the place where people who don't use the roads at all pay 1000 times as much for the roads as some other people who use them all the time. Government is the only place where things get wacky and some people pay amounts that are not fair. Taxation isnt paying your fair share, paying your fair share is paying your fair share, donating to a charity is paying your fair share, donating towards the building of a road is paying your fair share. taxation is the use of violence to force other people to pay what you believe is their fair share to the people you believe they owe it to.

I completely agree with your statement. I did however state it was my opinion. This is more along the lines of the message I was trying to communicate:

He is correct on this.   We should incentivize companies to pay a fair tax and create domestic jobs for the nation they are headquartered in.  They have gain a significant advantage being able to pool capital as a corporation.  With this advantage, they should contribute to the general welfare of that country.  If not then it is acting like a parasite.   There is no free lunch.

[Dalkore]

It always comes down to this: incentives matter.

Yes. So many people forget this. It's the most basic law of economics, but all too often, it's simply ignored.

He is correct on this.   We should incentivize companies to pay a fair tax and create domestic jobs for the nation they are headquartered in.  They have gain a significant advantage being able to pool capital as a corporation.  With this advantage, they should contribute to the general welfare of that country.  If not then it is acting like a parasite.   There is no free lunch.

This doesn't make any sense. People are people no matter what "country" they're living in. Who cares if a company contributes to the "general welfare" of people in another country, by investing or selling products there. Your suggestion just promotes nationalism.

Yes is does, the nation you live in matters.  If you don't care about it at all then your a poor example of its citizenry.   I am American and I care about the general welfare of other Americans.   I also disagree with our current policies and I do what I can not to give me consent to it.  But I am still American and care about its people.   I also care about other nations and hope they feel the same way about their nation as well.  Under those terms I hope we can continually finds ways to peacefully works together and trade.

[TECSHARE]

It always comes down to this: incentives matter.

Yes. So many people forget this. It's the most basic law of economics, but all too often, it's simply ignored.

He is correct on this.   We should incentivize companies to pay a fair tax and create domestic jobs for the nation they are headquartered in.  They have gain a significant advantage being able to pool capital as a corporation.  With this advantage, they should contribute to the general welfare of that country.  If not then it is acting like a parasite.   There is no free lunch.

This doesn't make any sense. People are people no matter what "country" they're living in. Who cares if a company contributes to the "general welfare" of people in another country, by investing or selling products there. Your suggestion just promotes nationalism.

There is nothing wrong with nationalism, as long as it is not supremacist. People seem to be unable to get that there was a time when the two words weren't bound together conceptually. Currently nationalism is a reality of our economy. Most of the world has no problem being nationalist. We can talk about globalist utopias all day, but in that margin set aside for "globalism" the other nations will happily displace the resources which another nations once consumed and simply shift nationalist power. I do not think we will or should have a global government. Human beings are far too socially immature to allow control over the entire globe to be allowed to be had by a very small handful of people. There are too many unique differences in each place on the planet to be homogenized into a giant global "melting pot" without destroying exactly what makes them unique.

[amagimetals]

Yes is does, the nation you live in matters.  If you don't care about it at all then your a poor example of its citizenry.   I am American and I care about the general welfare of other Americans.   I also disagree with our current policies and I do what I can not to give me consent to it.  But I am still American and care about its people.   I also care about other nations and hope they feel the same way about their nation as well.  Under those terms I hope we can continually finds ways to peacefully works together and trade.

I guess we just have different values. I care about the human race no matter where they come from, not just some group of people living in some imaginary boundaries. Of course I care about the general welfare of my neighbor, someone I know, more than someone in Asia that I do not know. I can't really say that I care about the general welfare of someone I don't know living in California more so than someone I don't know living in the EU. They are both human.

From an economic perspective the poorest people in America are richer than the middle class/richest people in many other countries. So, if you think time/money will help educate/clothe/feed people in poorer countries, then every $1/minute you spend helping the poor in other countries will give those people a lot more value than it would if you spent the money/time on poor people in the USA. So in effect you are helping the human race more.