Money in the news and how you are going to pay and pay and pay
WE’RE well used to hearing stories about how the tech companies, Apple, Google and the like, are dodging taxes all over Europe. But people are starting to realise that it’s not just that sector. Many other multinationals are indulging in very much the same behaviour:
Another reason for Inditex’s industry-best profit margins of almost 15 percent: the company uses the kind of tax loopholes coming under increasing scrutiny from international regulators.
In the past five years, Inditex has shifted almost $2 billion in profits to a tiny unit operating in the Netherlands and Switzerland, records show. Although that subsidiary employs only about 0.1 percent of Inditex’s worldwide workforce, it reported almost 20 percent of the parent company’s global profits last year, according to company filings.
THERE’S a whole new field out there called “econophysics”. It comes from the brainboxes in physics noting that they deal with chaotic systems a lot and so does economics: therefore we can apply what we know in one field in the other.
It does rather fail in one sense, for absolutely none of the physicists would agree that an economist knows damn all about quantum theory but they’re absolutely certain that a physics guy can know all about minimum wages. Odd that.
CHRISTIAN Aid has a new report out about how tax should work in Africa. And it’s a hugely amusing report. Amusing for devotees of blinkered ideologues ignoring reality that is.
Here’s the basic problem. In this part they are correct:
After a decade of high growth, a new narrative of optimism has taken hold about Africa and its economic prospects. Alongside buoyant growth rates, there has been some poverty reduction and some positive progress in sectors such as health and education.
Spotter: Bits and Pieces
IDIOTS keep saying the music industry is dying. Of course it isn’t. Have you seen how much money they spent on The Brits? If they’re skint, award shows would be held in a pub function room with darts trophies handed to the three remaining artists who have been daft enough to sign to a record company.
No, the record industry is doing just fine.
THIS is, of course, the moment that all Apple fanboys have been waiting for, the opportunity to get up close and personal with their now departed icon. The ability, even, to give his arse a good licking:
While Steve Jobs probably didn’t send much snail mail in his later years, the US Postal Service intends to honor the late tech icon by putting his visage on a commemorative stamp.
Stamp subjects are normally kept secret until just before printing, but the Washington Post obtained a document outing approved stamps for the next few years. The Apple co-founder’s stamp is already in design development for 2015, alongside stamps for music legends Elvis Presley and James Brown.
THIS will sound a little contrary, but bear with me: the purchase of WhatsApp by Facebook for $19 billion contains the seeds of what’s going to kill Facebook in the end. For it’s a sign that it’s both relatively easy to start a new messaging application and also that Facebook is going to have to keep buying up the new ones as they appear. And that way lies eventual bankruptcy.
The deal in essence is as follows:
The two men have known each other for years, but only began discussing the deal 12 days ago. They settled it for $19bn, including $4bn in cash, $12bn in Facebook shares and $3bn in restricted stock awards for WhatsApp’s founders and employees.
OK, so this evidence is from the US but it is pretty conclusive:
The Congressional Budget Office has cranked through the numbers for the proposed rise in the US minimum wage and it appears that it will put 500,000 people out of work.
Once fully implemented in the second half of 2016, the $10.10 option would reduce total employment by about 500,000 workers, or 0.3 percent, CBO projects. As with any such estimates, however, the actual losses could be smaller or larger; in CBO’s assessment, there is about a two-thirds chance that the effect would be in the range between a very slight reduction in employment and a reduction in employment of 1.0 million workers.
The increased earnings for low-wage workers resulting from the higher minimum wage would total $31 billion, by CBO’s estimate. However, those earnings would not go only to low-income families, because many low-wage workers are not members of low-income families. Just 19 percent of the $31 billion would accrue to families with earnings below the poverty threshold, whereas 29 percent would accrue to families earning more than three times the poverty threshold, CBO estimates. Moreover, the increased earnings for some workers would be accompanied by reductions in real (inflation-adjusted) income for the people who became jobless because of the minimum-wage increase, for business owners, and for consumers facing higher prices.
WHAT can you do to marry a rich guy. So asked Ms Pretty on a forum:
I’m going to be honest of what I’m going to say here. I’m 25 this year. I’m very pretty, have style and good taste. I wish to marry a guy with $500k annual salary or above. You might say that I’m greedy, but an annual salary of $1M is considered only as middle class in New York. My requirement is not high. Is there anyone in this forum who has an income of $500k annual salary? Are you all married? I wanted to ask: what should I do to marry a rich person like you? Among those I’ve dated, the richest is $250k annual income, and it seems that this is my upper limit. If someone is going to move into high cost residential area on the west of New York City Garden(?), $250k annual income is not enough. I’m here humbly to ask a few questions: 1) Where do most rich bachelors hang out? (Please list down the names and addresses of bars, restaurant, gym) 2) Which age group should I target? 3) Why most wives of the riches are only average-looking? I’ve met a few girls who don’t have looks and are not interesting, but they are able to marry rich guys. 4) How do you decide who can be your wife, and who can only be your girlfriend? (my target now is to get married)
THIS amused me: the new wristbands containing all sorts of lovely electronic gizmos to aid in monitoring your health actually make you ill. Fitbit, the company that makes them, apparently forgot about how you’ve got to be careful of the nickel content of something that you’re going to put onto a human being who then starts sweating:
Fitbit, a maker of wristbands that track physical fitness, says it is “helping people lead healthier, more active lives.” But complaints continue to mount from users who say Fitbit’s newest product, the Force band, is causing blisters, rashes and itchy dry patches on their wrists.
User forums on Fitbit.com, the website of the San Francisco company that also makes other wearable devices, include hundreds of comments about skin problems from wearers of the $129 Force.
One woman said she developed a burn-like red patch on her wrist that required medical treatment after wearing the wristband for seven weeks. She said Fitbit offered her a financial settlement, which she declined.
THIS is one of those stories where you just have to put your head in your hands at the gross stupidity of our fellow citizens:
When he vented his frustration about holiday prices shooting up during the school half-term break, Paul Cookson struck a chord with other parents.
His rant to 250 Facebook friends quickly went viral as outraged parents shared his post about rip-off prices 143,000 times.
Now the issue may even be debated in Parliament after more than 100,000 signed an online petition calling for the Government to curb prices.
Yep, 100,000 people are entirely mystified about why the price of something might rise when more people want it. Completely blind to the way that prices, supply and demand interact. You wonder how they manage to exist in a market economy really.
Forgive me but I think this is rather amusing, a website called Forgotify. The business structure of whic is that the more successful it becomes then the faster it will close itself down.
Err, yes, that’s right. The more people use the site then the faster it will go out of business.
You might think that you own the stuff you’ve bought from Amazon and iTunes. After all, you’ve coughed up the cash for it, all that music, those electronics books, they’re all on your devices. But sad to say you don’t in fact own it: you’re only renting it.
More than £30 billion of films, music and books bought through iTunes and Amazon could vanish when their owners die.
YOU may think this is absurd but nevertheless it’s is actually true. From somewhere around a lot to all of rising household inequality has been caused by womens’ lib. Which is, of course, an exciting finding:
The economists test this by comparing the Gini coefficient against their model of what the Gini coefficient would have been if men and women married randomly. In 1960, the actual Gini coefficient in the U.S. was 0.34, almost indistinguishable from the Gini coefficient produced by their random model (0.33). That suggests there was very little assortative mating back then. (Think of all the executives who ended up with their secretaries.)
By 2005, the Gini coefficient was 0.43. That’s a big increase. What’s more, the economists found that “if people matched in 2005 according to the 1960 standardized mating pattern there would be a significant reduction in income inequality; i.e., the Gini drops from 0.43 to 0.35.”
WE’RE being told, endlessly, that we must raise the minimum wage in order to increase the incomes of the working poor. It’s an outrage that people cannot support themselves in the style we think they all ought to be simply by the sweat of their brow. Thus the minimum wage must be raised to a truly living wage to make the world a better place.
However, here’s why that’s not actually all that great an idea:
Across the bulk of the income distribution, a 10% rise in the NMW leads to an increase in net family income amongst NMW families of around 3%; this is around 4% for families where the NMW is the main source of earnings, and around 2% for families where the NMW is the secondary source of earnings.
POOR, hard-up Prince has shocked his fans after The Purple One launched some legal action against 22 people for posting copies of live performances online.
Court documents say that the accused have distributed bootleg recordings using social networks and blogs.
THERE are various ways you can look at this but it does seem to be true that four out of five, or 80%, of all new private sector jobs are in London:
Talented young people are leaving provincial cities in their 20s, making a success of their lives in London and never go back. London is where the work is: the capital was responsible for four out of every five jobs created in the private sector between 2010 and 2012.
The brain drain meant that every major city outside the south-east is losing young people to London. One in three 22-30 year olds leaving their hometowns end up with Oyster cards and Boris as their mayor.
SO we’re told by a report about international online trade: the UK has the world’s largest trade surplus in it. Woo Hoo!
Makes up for the fact, well, just a little bit, that we’ve been running trade deficits for as long as most of us have been alive. Here’s the good news:
The value of online exports in six of the top e-commerce markets will grow fivefold to $130 billion by 2020, with Britain currently generating the biggest online trade surplus by selling more goods abroad, research showed on Monday.
It’s just that, well, I didn’t believe this. So I went off and got a copy of the report and asked the people who had written it quite how they had come to this conclusion.
IT’S something of a pity that the various taxmen across Europe don’t actually understand the tax laws that they’re supposed to be administering. We had the case a couple of weeks back of Italy trying to impost the “Google Tax” in clear violation of EU law and here we’ve the French taxman going after McDonalds. Again, seemingly ignorant of the fact that they’re just not allowed to do this under EU law.
THOMAS Perkins is being persecuted. His bloodline is a story of horror and systematic abuse. You see, Mr Perkins is rich. He is one of the one percent. Hell, he’s worth $8bn. He’s one of the one percent’s one percent. And he’s feeling persecuted. He’s living in a gated community, or ghetto, from which he can only leave at the gatekeeper’s approval. His house is full of uniformed spies, the eyes and ears disguised as maids, drivers, toothpaste squeezers and gardeners. Mr Perkins is a JEW. No. He’s not an actual Jew. He has Jealously Earned Wealth.
In a letter to the Wall Street Journal, Perkins speaks of “parallels” between the treatment of lower-case Jews in Nazi Germany and the “progressive war on the American one percent”. He notes:
“Writing from the epicenter of progressive thought, San Francisco, I would call attention to the parallels of fascist Nazi Germany to its war on its ‘one percent’, namely its Jews, to the progressive war on the American one percent, namely the ‘rich’.
LIGHTS out at Lancashire brewers Daniel Thwaites. Well, some of them are out. Following an announcement that the company is moving from Penny Street, Blackburn, to an unnamed location and cutting jobs, a few of the lights went out. The sign at the factory went from this:
THE big news over the Pond today is that Warren Buffett is offering a billion dollar (yes, really, $1,000,000,000) prize about basketball. And the thing is, yes, this is a pretty big prize, but it’s pretty certain that no one’s going to win it. Indeed, it’s set up almost to make sure that no one will.
WE’VE been having all sorts of lovely fun the last couple of years as people uncover the stories about how little the various internet companies pay in tax. Google sells everything in from Ireland, as does Facebook, meaning that they pay tax on their UK profits over there. Well, with a cure deal that lets them send all their profits to Bermuda without tax. Amazon does much the same from Luxembourg: meaning that the poor old British taxman never sees a penny in tax on the profits being made in the UK.
All of this is, of course, entirely legal. So, the call has been that the law must be changed so that these companies are paying more tax. And everyone went off to the OECD (the club for rich countries) and they said OK, we’ll have a look at it.
Proposals for a tax crackdown on digital companies such as Google and Amazon are to be dropped, as governments push ahead with measures affecting the global economy.
Designing special tax rules for internet companies would not be viable, given the growing digital presence in large parts of the economy, an international task force has concluded.
PLENTY of small companies out there have found themselves sliding down the Google search results after they paid some consultant or other to improve their web rankings. Because the consultants then go out and buy links from blogs and other websites: something that tricks the Google search engine into thinking that the site is more important than it is.
NOW here’s a thing. The Scott Trust Limited, which owns the Guardian Media Group, which in turn owns The Guardian, is just about to make a vast profit. And it will pay no tax at all on that vast profit.
Which is interesting, don’t you think, given that newspaper’s constant refrain that big business is ripping us all off by not paying taxes?