Internal investing

 

The conservatives are very proud of the amount of UK companies bought out by foreign investors.

They claim the companies are more efficient and make more profit, which benefits the UK.


Horlicks!


The USA tax system allows overseas investment to be put against USA taxes due.

That means if a company like Trump owes 1 million dollars they can buy a golf course for 1 million dollars and pay no tax. US treasury loses, it does not mean the UK profits. Next year the profit from that golf course goes back to the USA and another golf course is bought.


Internal investors do not care about the company they bought. They want profit, short term.

So step one reduce staff, working conditions and pensions.

Step two disband research and development and maximise profit.

Step three sell with a healthy profit line on the accounts.



With no research and development the company will fail, they will not be able to employ old staff even if they could as they will not be trusted.


America has found it is not profitable to invest in research and technology. Out of one hundred ideas, only one if ever, makes it to being profitable. It is easier to buy up a company that had the idea and made it work.



The UK should impose a new tax of 50% of the company worth on any outside investor. If they are still serious they will buy, as they have nothing to lose.



With that tax revenue you could buy a new red bus with a slogan, or better still invest it in university research facilities.