Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Self-Righteous Starbucks Forced To Chug A Venti Of Greedy British Government
Forbes ^ | 12/20/2012 | Kyle Smith

Posted on 12/20/2012 6:48:07 AM PST by SeekAndFind

It’s easy to chuckle at Starbucks’ tax troubles. The java merchant that has successfully enticed millions to pay for the privilege of hearing words like “barista” and “doppio” sprinkled over their morning jolt has made a specialty of offering a little dollop of sanctimony in every cup, promising to calm the conscience even as it raises the heartbeat. Shibboleths like “sustainable,” “fair trade” and “responsibly grown” seem to add value to its self-regarding clientele.

Alas, Starbucks’ now-notorious “tax avoidance” policy in the United Kingdom proves that once you start chugging a Venti of self-righteousness, you may find yourself getting force-fed it. Having done nothing illegal or wrong but simply by optimizing its tax structure in Britain so that its corporate tax payments to Her Majesty’s revenue service amounted to less than one percent of sales, Starbucks fell afoul of activist groups, the media (see this rabble-rousing piece by Reuters) and finally Members of Parliament who openly chastised the company. Labour Member of Parliament Michael Meacher, who is making his name on attacking corporate tax avoidance, said the country’s actions were “extremely unfair.” Chastened, the company began negotiations with HM Revenue & Customs to discuss a more “suitable” payment.

Starbucks is right to be ashamed.

It ought to be ashamed of how it is letting mob tactics and blowhard politicians seeking the spotlight come before the interests of its shareholders and customers.

Last year, on 398 million pounds in sales, the company paid exactly zero in corporate income tax. A rival coffee chain, Costa, paid 15 million pounds in tax, or 31 percent of profits on sales of 377 million pounds.

Starbucks should chug a double espresso and steel itself for a more vigorous defense. It should spend more energy pointing out to British and European lawmakers who are harassing it

(Excerpt) Read more at forbes.com ...


TOPICS: Business/Economy; Government; News/Current Events; United Kingdom
KEYWORDS: britain; starbucks; taxes

1 posted on 12/20/2012 6:48:16 AM PST by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind

:-) I love “Pot meets kettle” stories. Pass the popcorn.


2 posted on 12/20/2012 7:00:11 AM PST by wbill
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Coming here soon.

There is an OWS-style organization over there called Uncut UK. Basically they react to cuts in welfare spending by blaming them on businesses who are not paying their “fair share” of taxes and then shutting down their locations with noisy sit-in protests.

If a fiscal cliff deal involves any serious budget cutting look for it to happen here too. I look for the phrase “Unpatriotic Parasite Employer” to be thrown around liberally by the Left as well.


3 posted on 12/20/2012 7:13:32 AM PST by Buckeye McFrog
[ Post Reply | Private Reply | To 1 | View Replies]

To: wbill

What the reality is here is if you put in place tax policies that do not strangle business, they will pay their fair share. Starbucks played by the rules and now the Brits have their panties all bunched up.

TFB


4 posted on 12/20/2012 7:15:58 AM PST by EQAndyBuzz (You can't bring something to its knees that refuses to stand on its own)
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind

My wife, bless her heart, loves paying high prices for coffee (I don’t drink it) and it amused her that when we go through a SB drive thru I refuse to order for her using their lingo.

She tells me, “I want a venti meso with soy” and I say things like, “yeah I need a large one of those expensive, regular coffees with fake milk”.

Or she says “a pumpkin soy latte with two sugars” and I say “a really big steamed coffee with fake milk and pumpkin flavor and 2 lumps”.

She always chuckles.


5 posted on 12/20/2012 7:16:24 AM PST by Resolute Conservative
[ Post Reply | Private Reply | To 1 | View Replies]

To: Resolute Conservative

lol. I love that. God Bless both of you. I can see why she loves you. Smart ass and all.


6 posted on 12/20/2012 7:21:29 AM PST by napscoordinator (GOP Candidate 2020 - "Bloomberg 2020 - We vote for whatever crap the GOP puts in front of us.")
[ Post Reply | Private Reply | To 5 | View Replies]

To: SeekAndFind

I get a couple of small Coffees Of The Day just to go in and oggle the beautiful black barrista behind the counter.

Starts the day off right.


7 posted on 12/20/2012 7:44:47 AM PST by onedoug
[ Post Reply | Private Reply | To 1 | View Replies]

To: Resolute Conservative

Tired of expensive coffee? I make my wife espresso every morning. I even use fancy coffee. Its cheap if you have an espresso maker or even just a little Bialetti espresso pot!


8 posted on 12/20/2012 7:53:33 AM PST by Little Ray (Get back to work. Your urban masters need their EBTs refilled.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: SeekAndFind

“Last year, on 398 million pounds in sales, the company paid exactly zero in corporate income tax.”

That’s a nonsense statement. Income taxes aren’t assessed on sales receipts or gross income for corporations.


9 posted on 12/20/2012 7:59:09 AM PST by Boogieman
[ Post Reply | Private Reply | To 1 | View Replies]

To: Little Ray

I told her to drink water and her breath won’t be offensive. I got the look.


10 posted on 12/20/2012 8:01:37 AM PST by Resolute Conservative
[ Post Reply | Private Reply | To 8 | View Replies]

To: SeekAndFind

Worth pointng out that Corporation Tax in Britain is already the lowest in Europe, lower than the US for higher turnovers, and has just been reduced even further (it’s now 20-23%).


11 posted on 12/20/2012 9:39:01 AM PST by Winniesboy
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson