Amazon and the corporate mop-up of all trade – at any price

In the United Kingdom Amazon has paid very little tax – it keeps saying it’s not making a profit. In fact if you or I were as unprofitable as Amazon, and indeed were on, for example tax credits, the government might tell you to quit your business and get a job!

But Amazon has set out to create a behemoth business out of killing off all their competition. You know those nice little book shops where people knew stuff – and could recommend things to you? All disappearing! Of course Amazon Marketplace is where a lot of these businesses are now hanging out – selling books for a penny second-hand, or selling at discount – beating Amazon prices.

In fact it often doesn’t look as though Amazon wants to sell books at all. I have noticed many titles where the prices Amazon want you to pay are extortionate. So how come they aren’t paying any tax?

If you could undercut every other business in your sector long enough to cause them to close their high street presence, and maybe retreat to a box-room or garage, or to a small warehouse – well pretty soon you’d have no competition, and in fact would have them dependent on you as their ‘marketplace’. All the while they are selling on your marketplace, you are taking money off them, and they, being small businesses are paying taxes too. However you, somehow, undercut everyone and never make a profit….

Well that’s the idea, really – put them all out of business and then you can charge what you like. Put them out of business and create a monopoly – one which employs Brits, but contributes nothing to Britain.

Oh and just look how they treat their staff! I quote:

AmazonYou can sign the petition against this here: Link

Amazon wages are the least of the issue, in my view. If putting all competition out of business and thus creating a large turnover with no profit to speak of is the business plan, then staff treatment is never going to be a high priority. In fact if you want to read how they get treated, in their own words, click here: Link

But Amazon are not alone – look at this lovely graphic from the guardian news site showing turnover versus tax paid in the UK:

How-much-tax-is-paid 2012You can read their article here: Link

Companies like Amazon are a good reason to re-consider profit based taxation. How about abolishing taxation below £30,000 turnover for small businesses, and then charging a flat rate up to £1million turnover. Over £1million? We want, say 10% of your turnover. Not your profit, because you have clever accountants, but your turnover.

To put this in perspective, last year I paid 30% of my profits in tax and additional national insurance payments. This was on a tiny income!

vodafoneWe need to find a way to make the marketplace work for ALL businesses, not just the ones who can afford to hire the fancy accountants.

Give me your thoughts!

God Bless you