It is no news that eBay’s and Amazon’s tax-headquarters is by no accident both in Luxembourg – while the average (German) employee pays 19% on every product they pay and SMU CEO pay up to 40% (those that can not afford panama bank accounts) in taxes – making their work significantly more expensive and possible unaffordable – which leads to less and less people wanting to start a self-employed business and a general reduction in jobs and innovation that goes along with SMEs.
Effectively “killing the host” as Mr Hudson put it. Or Marx put it: “the credo of every capitalistic nation is: after me the flood“Those dishonest cheaters – probably secretly paid by massive lobby groups of the financial industry – are responsible for the reduction in jobs and the rise of left and right wing extremism.
You don’t need a study that Hitler did best in times of economic downturn. And if the state has less and less money to spend because of tax heavens – the economic downturn is only a matter of time.
There is a word for this: financial crime.
“The president of the European commission, Jean-Claude Juncker, spent years in his previous role as Luxembourg’s prime minister secretly blocking EU efforts to tackle tax avoidance by multinational corporations, leaked documents reveal.
Years’ worth of confidential German diplomatic cables provide a candid account of Luxembourg’s obstructive manoeuvres inside one of Brussels’ most secretive committees.
However, the leaked cables reveal how a small handful of countries have used their seats on the committee to frustrate concerted EU action and protect their own tax regimes.”