This is very interesting.
It seems globalisation* has allowed megabanks to commoditise nations: if nation A does not bend over, the megabanks will simply move to nation B.
If these megabanks were doing something criminal, citizens of all nations would demand cooperation (something like Interpol) to prevent these banks just changing nation to avoid justice. But as it's not criminal, nations are doing the opposite: competing to attract these banks, and at least earn some tax rather than none.
With crime, it's a pretty easy mental leap from small scale examples in our personal experience (eg. getting mugged) to demanding that our governments take large-scale action (eg. Interpol, sanctions against states harbouring terrorists, etc), cooperating between nations.
It won't be anything like so easy to get the whole world to agree on what is a just contribution -- ie. a just level of taxation -- that should be taken from the profits of banks (who trade on society's commerce), and given to the (elected governments of the) billions of ordinary people who actually constitute that society and that commerce.
(* "globalisation": I mean reduced barriers to international trade and finance, making it even easier for megabanks to switch from nation A to a higher bidder).
Caveat lector: I probably don't know what I'm talking about, as though that wasn't obvious.
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Bee Nice |-|, Tue 22 Jun 2010, 13:56,
Reply)
I think you made a good point well.
Yes, banks are not "misty eyed" about their responsibility to Britain - and most of them are not British, so why should they really?
It's what used to happen on a national scale (let's move our Head Office to Milton Keynes to save rent) but happening on a global scale.
But I think we should remember the reason they do this: it's their job. The people who run big companies are responsible, BY LAW, to shareholders. And actually quite often that IS us, through pension funds etc. If they can see a way to legally reduce overheads and pay increased dividends to shareholders, they have a moral responsibility to do so.
The inequitable thing about these global businesses in many ways is the fact that most of them pay most of the tax they do pay in countries that need it least (here, the US etc).
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prince-igor si tacuisses, philosophus mansisses, Tue 22 Jun 2010, 14:36,
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I agree blame does not rest with the individuals in the banks.
If everyone thinks such flight from tax is bad, the proper mechanism to prevent it is to enact new law.
Pessimistically, I don't see that happening. It's unstable: there's too large a reward for being a defector nation. (Nation X decides to relax its bank taxes, and sees an influx of bank trade).
It's prisoners' dilemma / tragedy of the commons territory. To overcome that, it takes a really simple, powerful, personal mental image to get everyone to cooperate, and to effectively shun defectors. Perhaps one day.
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Bee Nice |-|, Tue 22 Jun 2010, 14:46,
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Aha ha ha. Perhaps today!
http://www.google.com/hostednews/ap/article/ALeqM5iHV4qy6CEXTPufLxX7emismvbp3QD9GGCV1O0 -- "Germany, France, UK commit to bank tax"
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Bee Nice |-|, Tue 22 Jun 2010, 16:41,
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