Stop the corporate tax race to the bottom!

En este contexto social, cualquiera podría pensar en la actual crisis en la que nos vemos inmersos y que no afectado únicamente a la economía y a los servicios sociales, sino que se ha extendido a toda la estructura organizativa, desde la crisis de representación política hasta la aparición de los nuevos partidos políticos, pasando por las inminentes crisis territoriales como la de Cataluña en España o el Brexit. Esta crisis, como es natural, también se ve reflejada en las demandas de la ciudadanía en cuestiones relativas a profundización democrática cuyo conocimiento y ejemplificación parecen más accesibles hoy en día debido a la bien conocida por todos, la Sociedad de la Información en la que vivimos. En este sentido, creo que es especialmente necesaria la democratización interna de los partidos políticos en estos tiempos, cuando este objetivo es compartido por muchas personas no sólo como sentimiento sino también como principio inspirador para el correcto funcionamiento de nuestro sistema político. Sin embargo, los resultados que muestran cuantiosos estudios sociológicos de carácter analítico de los comportamientos de la sociedad y sus instituciones a todos los niveles y en todos los ámbitos, son poco esperanzadoras. En los últimos años, se han registradolos perores resultados en encuestas oficiales de este tipo y los partidos políticos han bajado notablemente su valoración, generando desconfianza en la clase política como una de las principales preocupaciones de la ciudadanía. Esta necesidad de democracia interna, no es una señal novedosa, sino que ha estado presente desde la aparición de los partidos de masas, esto es, que están cada vez están más alejados de la sociedad. Pero, a pesar de todo ello y de las recurrentes críticas, los partidos, siguen constituyendo el mecanismo asociativo más adecuado para canalizar la pluralidad política de la sociedad y para estructurar democráticamente los órganos de poder político de los Estados. De ahí la necesidad de seguir profundizando en la democratización interna de los mismos y en la plena vigencia en su interior de los derechos constitucionales de sus afiliados y afiliadas, como base del proceso de participación política democrática. Para ello, sería interesante, desde mi punto de vista, foto mecanismos, estructuras y/o procedimientos informales de organización con la perspectiva de evitar la tendencia de la ciudadanía a ver a los partidos desde un punto de vista meramente formal, de manera que esta visión minimice la importancia del realismo existente en las relaciones sociales y prácticas políticas presentes en las organizaciones. Pues, que los recursos de los partidos no sean estrictamente partidistas, ayuda a que los partidos alcancen sus metas y tengan una conexión fuerte con el electorado, lo que se convierte en un destacado condicionante de cualquier proceso de democratización interna de las formaciones políticas de un estado. A modo de resumen, podemos decir que es necesario descubrir cómo pueden conseguirse los mayores niveles de democracia interna en un partido. Y que, básicamente, esta consideración queda reducida a la elección de sus líderes y candidatos por sus afiliados y afiliadas a través de mecanismos competitivos; a la toma de decisiones de forma inclusiva y con la participación voluntaria de sus miembros; a la libertad de expresión interna y externa sin miedo a represalias y a que los candidatos/as, cargos públicos y autoridades rindan cuentas de sus actos a través de mecanismos de control efectivo que les conceda la confianza de sus bases asentada en el respeto de una serie de derechos, responsabilidades y garantías. En definitiva, parece que el futuro de los partidos políticos posiblemente esté asociado a una mayor transparencia en sus gestiones; a una mayor profesionalización de sus dirigentes políticos y al fortalecimiento de los mecanismos de fiscalización de sus actividades. Al fin y al cabo, los partidos más democráticos deberían suponer mayor número de recursos humanos y financieros para las actividades del partido; mayor legitimidad frente al potencial electorado y, en consecuencia, un mayor número de votantes y afiliados. A fin de cuentas, el objetivo final recae en la mayor confianza de los ciudadanos y que otorgará el éxito electoral y político a los partidos.

How do we ignite people’s sense of injustice on this topic? I find it is often difficult to demonstrate that the behaviour of companies avoiding taxation or paying minuscule amounts in comparison to profits, has a direct correlation to the way wealth moves through the welfare state. The mismanagement of business in Europe leads to a squeeze on immediate provision and state services; it impacts how quickly you can see a doctor and whether your children have a place at the local school, it determines the amount of crime on your street and the state of your city. In the UK we are struggling to care for a growing ageing population, we have a healthcare system running on empty and social housing is becoming a thing of the past. But the justified anger that then rises in society, the growing sense of inequality amongst those on the front line of suffering, is not channelled toward the silent faceless corporations but onto neighbours. How do you turn the face of the masses upward, not sideways? We have the policies so now we need to show voters the problem clearly and unapologetically. Justice demands that if big businesses want to operate in our nations they must pay for our time, our workers and our welfare. The ladder to success, expansion and profits cannot be paved with the happiness, the health and the rights of our citizens.

It’s been 10 years since the Financial Crash of 2008 took place; an incident of such seismic proportions, that it rocked the global financial system down to the core. 10 years on, the common person is still suffering the aftermath through failed austerity programmes, massive cuts to public spending, wage stagnation and rising poverty levels. Europe is at a crisis and this is because of the neoliberal orthodoxy and failed perception that deregulation will promote the failed notion of ‘trickle-down Reaganomics.’ The recent bombshell exposé of the Panama/Paradise Papers have only gone on to affirm that the mega-rich and wealthy corporations and individuals cannot be trusted to regulate themselves. The grotesque levels of wealth funnelling and tax avoidance is not only immoral, but also enormously damaging to global economies. Whilst calls for regulation from Socialist parties are often labelled as ‘anti-business’ and ‘anti-aspiration’ – this is incredibly untrue. The OECD (Organisation for Economic Co-Operation & Development) and the International Monetary Fund have also stressed that equality in society has a direct correlation on efficiency. The PES parties are not against wealth creation and company profits, but rather they believe that Governments should play their part and work closely with businesses to create a working order where those who work the hardest to allow these businesses to thrive, are fairly compensated for their services. For too long, businesses have felt completely at ease with exploiting the labour force through low pay, zero-hour contracts, unpaid internships and other schemes which under the guise of providing ‘experience and opportunity’ exploit the workers. Furthermore, these companies find it completely morally acceptable to funnel those profits out of the countries they earn them in; to Tax-havens around the world, purely to minimise their tax contributions. We are very fortunate to be seeing a change in the political tide; we’ve seen a progressive anti-austerity government get elected in Portugal with Antonio Costa, we’ve also seen Pedro Sanchez and the Spanish Socialists recently take government; and in the UK, Jeremy Corbyn and the Labour Party are knocking on the footsteps of Downing Street … The time is perfect for S&D parties to create a joint European new economic order for the Ages. One which is fit for purpose in the new world, where we see new economic challenges emerging through digital economies and crypto-currencies. What we really need now, is the introduction of Europe-wide Public share registers so that Tax authorities across Europe can hold to account those who misuse the system. The way we change European Policy and tackle tax-avoidance head-on internationally, is to lead by example. We can’t, and will not, wait for others. We must tell the world “look at us and follow our lead.” This has gone on for too long, and as a result of waiting for someone else to start the charge; European states have potentially lost billions, and that will continue until the issue is addressed! And not every business is an evil, tax-dodging and labour-exploiting leech. However, the actions of the immoral few severely harm public perceptions of all businesses. The ones who play by the rules and pay their fair share are being hit the hardest, and we must break the cycle of rewarding malpractice; whether that be tax evasion or bankers’ bonuses. Only then can we win back the public’s trust!

In the EU there are so many diffrent rules about taxing, that some of our countrys or islands are very simmilar to fiscal paradises. Changing this could be faced like an intrusion in the countrys laws…or not. We are all together in this so if we have a simmilar economic politics could be a beginning

The European Union is still a rather wealthy place in the world. This means that it is a great opportunity for many firms to try and enter this market, to develop new products and push forward technological progress. As a socialist, I cannot but encourage all those who follow their passion and talent and put it to the service of everybody else by working hard and competing in the business world. It is simply right that those who succeed enjoy a reward for this. A strong free market *can* be a wonderful opportunity for consumers, as long as actors who are in it are accountable to society as a whole, to their shareholders but also to their stakeholders. This, in Europe, is not the case any more. Huge corporations have managed to harvest a political, financial and commercial firepower that is big enough to influence collective decision making processes. We came to the point where the Greek people were humiliated and stripped of their hopes and futures because a couple of bank across Europe were full of their bonds. Today, governments are competing against each other to steal away firms and businesses from neighbour countries by lowering and lowering corporate taxes. This is unfair, when some states are already facing tremendous financial problems. It is unfair because it advantages those countries who are already stronger and it incentives the creation of fiscal loopholes. It is therefore a mechanism that leads to a deepening of the dangerous asymmetries that have developed through member countries and that are leading to profound political instabilities. Fiscal competition can be beneficial when it is fair and sustainable. And it should work the other way round. The weakest parts of the Union should have fiscal incentives to develop, not the other way round. It is therefore time to act on this, to call for a minimum corporate tax adjusted according to the industrial power of the countries, to rebelance competition, because no market is better than a truly inclusive market. It is time to combat fraud and evasion: nobody is successful on their own, but thanks to the fact there is a society around them. Asking to give back is therefore legitimate and everyone should comply. I firmly believe that the European Union will have no future if we do not rediscover and propose to the public debate ideas and words such as respect, solidarity, fairness, democracy. It is only us, the Socialist, that can do this.