Repeat after me everyone: “Businesses don’t pay taxes, people do.”
I wrote last week about companies using tax avoidance (not evasion) to reduce their tax bill.
One of those companies, Starbucks, has announced that due to public pressure (and to protect their image), they will stop using one of the loopholes that reduces their tax bill in the UK.
Meanwhile, the company has announced the removal of paid lunch breaks, changes to sick leave and other benefits for all of their employees, claiming they’re unrelated to the tax changes.
Of course, all the changes really prove is that businesses don’t pay taxes, people do.
If a businesses’ costs increases, they must either cut costs, or increases prices.
The tax a business pays is one of those costs, and we shouldn’t forget it.