As has been on the cards for years, corporates are the new governments.
I am not a fan of high polluting Apple (fintag) but Tim Cook's performance yesterday (bbc) was stellar. His middle finger to the US government's high corporate rates of tax showed the hypocrisy of other governments who bang on about tax evasion when what they really want is the spread to be much smaller between countries. All this "fair share of tax" nonsense; nobody wants to answer the simple question:
How much tax is fair?
Personally I think 0% is a fair number because on the whole people spend better than governments but that is a political and moral issue. In the end the rules and laws govern what the tax should be and unless some global body with nuclear weapons bullies countries like Ireland and Cayman into collecting more tax then the tax issue will never be solved. If there is a problem at all. What if Ireland collected 35% tax, the US would still be in the same position except their favorite stock that makes up most of their pensions would be worth 35% less. Cake. Have. Eat.
If I were Apple I would buy an island like the Caymans and then put its corporate tax rate up to 50% (with rebates of 50% to those who are already there) and then nobody could complain. Apple could then legitimately complain to the rest of the world that they are tax havens and the US et al exist only to help tax evaders and avoiders.
The reality is ultra aggressive tax evasion should be encouraged as it will help those who govern draft better legislation. This is all a sideshow to cover up the fact Governments are so badly managed.
But this is dull. What isn't dull are the equities markets. To show you how easy it is to make money I will put my balls on the line and pick 10 stocks and buy them at the open price on Monday and sell on the close on Friday. My hurdle will be 2%. That is 2% in a week.
I won't fail. The stocks selected at random will be US and European stocks including some ETFs. My excel random number generator is ready to go.
Xbox revealed to pay no tax (bloomberg)
Japan will be one of my randon 10 (bbc)
Trading is a mugs game.