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The Business Rates Con U.K

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The Business Rates Con U.K

In the U.K most businesses pay what is called business rates, which is a fixed rate tax on business. The business rates tax is meant to be paid by business for local provisions provided. This is a complete lie and con as most business receives very few local services.

                                     What the business rates is a additional tax imposed on business who have no votes and cannot vote against it unlike domestic rates which are paid by local tax payers. The business rates are a fixed cost not based on a business’s ability to pay..This means it is an extortion racket by the state on business...only the Mafia operate on this basis which is perhaps where government has  got the idea. Small business do get business rate relief based on location and size of premise,most do not.

                                              The way the Business rates is calculated on 50% of the rental value of the business, so if the premise has a rental value is $10,000 the business rates would be $5000,this has to be paid even if the business makes a loss, so it is a fixed cost on business. If the economy is doing well and business are making good profits it is not an issue that gets much attention. With the recent financial crises and change in business patterns i.e. the rise of trade on the internet has affected small business more than large business.

                                                   Some business have used the opportunity of the internet to have a shop online, others have located to cheaper areas’s.The absurd situation is that some time the rates can exceed the rent. Recently a large retail premise was advertised with rent of $1 for the first six months. The problem the owner had in renting was the business rates was $15,000 per year.A business friend of mine had to close a new business because the business rates exceeded the some businesses are working for the tax man..This is an absurd situation.

                                              Successive Governments have used the business rates as a means of collecting shortfalls in tax revenue, while keeping the domestic rates low to avoid a voter back lash. The problem with this tax extortion racket is the internet has enabled some business to locate online and get rid of their expensive bricks and mortar shop with high rent and rates.

                                              So trying to tax someone who works from home, their garage or shed is very difficult. So you would think government would come up with better, fairer system...instead governments simply keep raising the business rates. To better understand what i am talking about...recently a prospective businessman wanted to open a traditional old style sweet shop in the city centre...he worked out his costings..the rent and business rates was $75,000 + $25,000 in expenses total of $100,000..this is before he makes a profit..he worked out that he would need to sell a lot of sweets to make it pay..he made a wise decision not to proceed.

                                  The changing pattern of business means that over 25% of all small shops will close down in the future..while the larger retailers are expanding..managing through clever tax planning to pay very little in the UK the tax burden have been shifted from the rich to the poor. Small business pay more tax as percentage than big business, in fact the government has created tax loopholes for them to exploit..because they are so desperate for their money(investment) ?.


                    The UK government is nothing more than a tax extortion Mafia..The business rates con being one of their tactics to extort taxes through threats of violence and intimidation . The Democracy con is used as justification as if you have actually voted for your tax theft for public services which are being reduced and you have limited access to, and never voted for.

                       Big business have managed to circumvent the business rates con by ,operating from low cost premises which attract lower business rates.The economist magazine devoted a whole article justifying the current situation. The summary of the article was that big business does pay taxes through their employees who pay income tax and insurance. The logic being that money given to employees is tax that they avoid paying. The economist magazine a pro-business,anti-government, promoter of the American Business Model Magazine, increasingly is going to absurd lengths to justify excessive pay for Ceo’s while justifying low pay for workers on the markets know best principle.

                                As the Neo-Liberal agenda crumbles and it creates more losers than winners, governments are using coercion to beat down the people, big business uses money (investment) as a weapon against government in what it wants, ordinary people are and have been marginalized through the democratic principle, leading to decline in  trust, decay of our political, social and economic values. The business rates con continues




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Welcome to the U.K (Warning: Economic & Social Experiments in Progress)



Once upon a time there was little Island country called the U.K.It was a great Sea power and ruled a quarter of the world. There was a saying the sun never set on Britain’s Empire.

                   The shameless exploitation of people of colour brought great wealth to this Island nation. It made some people very rich and others not so .During the height of its power Britain was about 2% of the world’s population and 40% of the worlds manufactured output. Just about everything was made in Britain. Then things started to go wrong

              As long as Britain could exploit its Empire it did fine. Then the Second war came and Britain was bankrupted. An enlightened US President called Roosevelt came along, known simply FDR was an anti- Colonialist and Anti- Imperialist made it a condition of money needed for reconstruction that Britain must get rid of its Colonies and set them free.

                              So after the 1948 decolonization took place. As a consequence of these events Britain could no longer exploit its former colonies in the way it did as before. Then suddenly competition started to come to U.K.

                                British business had a choice in order to remain competitive (1) invest in new technology i.e. plant and machinery, innovation, invest in high skilled productive workforce, or it could lower its labour cost making the same stuff.

                    Most British business decided the cheap option to lower labour costs, by importing low skilled labour from its former colonies, like the textiles Industry. Unfortunately the industry only lasted an extra seven years then it slowly died out.

                                And so it was other industries like the nationalized car industry continued to lose money while making cars nobody wanted. Then Margaret Thatcher came along and she decreed low and behold I will make Britain great again will wave a magic wand called Monetarism from the great Guru Milton Friedman (thank God who is now dead)

                        I will sell of Britain to big business, so auctions were held called privitizations, and the public were conned in to buying what they already owned, public utilities which then became private utilities.

                                 And Thatcher spoke from the Capitalist Mountain that everyone will be better off, and so it came to pass peoples water bills doubled along with their gas and electricity, house prices have gone through the roof, after selling of most of the social housing stock the government owned.

                                  Despite all the privitizations, and flexible labour laws, the U.K is still not as productive or innovative as its competitors, so more experiments were needed on the population, now we must now get rid of the welfare system; our benefits are too generous because some people can be better off on benefits than working. No one could work out that reasons people are better off on benefits is because our wages are too low.

                                And so it came to pass that the government of the day decided to subsidize low wages through the tax system called working tax credit, so it gave employers no incentive to pay a living wage knowing that employees could get tax handouts from the tax credit system. So £5 billion pounds became a tax subsidy for business to pay low wages each year.

                            And what happened the number of people on the minimum wage went and the number of people claiming tax credits.

                       Despite all the above measures the U.K’S overall tax rate that is direct and indirect taxes has remained static 37-40% of gdp.

                            So be warned more economic and social experiments are needed to make Britain great.

                          Kind regards

                          Tiger Moto

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