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  (Source: stateofsearch.com)
He said Google pays exactly what it's supposed to pay

The United Kingdom has been looking into the tax-paying practices of large companies, and Google's Eric Schmidt doesn't see the big deal. 

Schmidt, Google's executive chairman, defended Google -- which was criticized for profit shifting and dodging larger tax payments -- saying that the UK should change its tax system if it wants large companies to pay more or less each year. 

"What we are doing is legal," said Schmidt, referring to Google's UK tax payments. "I'm rather perplexed by this debate, which has been going in the UK for some time, because I view taxes as not optional. I view that you should pay the taxes that are legally required. It's not a debate. You pay the taxes.

"If the British system changes the tax laws, then we will comply. If the taxes go up, we will pay more, if they go down, we will pay less. That is a political decision for the democracy that is the United Kingdom."

Earlier this year, it was reported that Google avoided paying about $1.6 billion USD (£1 billion) in UK taxes. Google sent £6 billion through Bermuda over the course of the year, which halved its 2011 tax bill. In fact, Google funneled 80 percent of its global revenue through the island and ended up paying about £1 billion less to the government.

David Cameron, the Prime Minister of the UK, said that companies like Google are immorally minimizing tax bills and need to be stopped.

Just last month, the UK openly stated that it was concerned with the fact that Google only paid £6 million ($7.8 million USD) in UK corporation tax. Schmidt defended Google at that time as well, saying that Google "empowers literally billions of pounds of start-ups through our advertising network" and is "a key part of the electronic commerce expansion of Britain, which is driving a lot of economic growth for the country."

Google isn't the only large company under the microscope. Apple is also being questioned for profit shifting, where it made an estimated £6B ($9.50B USD) in Britain last year, but paid only £10M ($15.8M USD) in taxes.  Apple was able to do this because of the British tax code's rule that largely exempts companies based in Ireland from paying British taxes.

Apple CEO Tim Cook offered tax reform proposals to U.S. Congress at a Senate hearing last Tuesday in an effort to bring back foreign earnings to the United States. Furthermore, he's suggesting that this money be invested in research and development and creating jobs in the U.S. 

Source: BBC News



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RE: Logic
By kattanna on 5/28/2013 12:50:37 PM , Rating: 3
quote:
Our taxes keep going up because our politicians are corrupt, they are the ones that put the loopholes in the law in the first place.


how can you blame the politicians? they are not the ones who keep electing themselves into office.. its their constituents.. and they are the ones to blame


RE: Logic
By BRB29 on 5/28/2013 12:54:02 PM , Rating: 2
We voted for those politicians, those politicians lied to get our votes. I still can't figure out if the chicken or the egg came first.


RE: Logic
By kattanna on 5/28/2013 1:11:34 PM , Rating: 3
aye.. but whats up with RE ELECTING those who have lied to you already?

thats what mystifies me


RE: Logic
By BRB29 on 5/28/2013 1:23:14 PM , Rating: 5
because people don't bother to check if those retards they voted kept their promises.
People just want to hear sweet nothings in their ears.

How happy they are with politicians also depend tremendously on how the economy is doing also.
Since any economics impacts are usually felt years later, we tend to cheer and jeer the wrong leaders.

Basically, everything is more of a knee jerk reaction for people. Politicians hide their blunders in a good economy and then find someone/something to blame during bad economy. People tend not to question political matters in a good economy.


RE: Logic
By theapparition on 5/28/2013 1:46:16 PM , Rating: 4
When 90% of a populace is only interested in voting along party lines instead of actually researching the candidates and issues, what do you expect.


RE: Logic
By Mint on 5/29/2013 2:44:02 PM , Rating: 2
Even if you did research, what choice do you really have?

We have only two parties to choose from, and corporate tax is certainly not the #1 issue that I will base my vote on.

My preferred solution isn't even available. I'd like to scrap loopholes and then, instead of reducing the marginal rate, create a deduction for every man-hour of employment that a company creates. The more they employ, the less tax they pay.


RE: Logic
By rameshms on 5/28/2013 3:31:55 PM , Rating: 2
Most of the time people don't vote for what the politicians achieved, but for several other reasons, religious beliefs, race, city/state of birth for ex.

Plus, people don't contribute $$ to their campaign.. the corporations do :)


RE: Logic
By BRB29 on 5/28/2013 3:55:25 PM , Rating: 1
People do contribute quite a bit. Depending who you are looking at, I think Obama had more funding from people while Romney is mostly from corporations.


RE: Logic
By KCjoker on 5/29/2013 6:44:54 PM , Rating: 2
Wrong, that was just money funneled from large corporations down to people to sound good.


RE: Logic
By cyberguyz on 5/28/2013 1:36:18 PM , Rating: 2
Agreed.

It really doesn't matter who gets in. Anything that was implemented by the predecessor will be preserved by the successors - no matter who that is.

So if corporate loopholes are created by a predecessor, you can bet who ever gets into power will ensure they stay there.


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