coffee and tax

Courtesy of the author John Siddique – who posted it on facebook a week or so ago, asking (as I did) what loyalty meant – one year after I wrote it the Caffè Nero letter is up and running again. I had no idea this had happened till someone I knew drew my attention to it, but by then it had already been shared nearly 1000 times. Last time I looked the number of shares was over 10 000, with almost another 2000 on a further post I’d put up, saying how surprised and pleased I was to see it was still making waves.
The posts have attracted lots of positive comments, and support from people who were previously unaware what Caffè Nero were up to – hardly a surprise seeing as they don’t go shouting it from the rooftops – many of whom have said they won’t be drinking there any more. It would be nice to think that independent, tax-paying coffee shops, made successful by the passion and hard work of the people who run them, will see the benefit of this – the option’s there, after all.
In amongst the support, of course, there are comments by some people suggesting I’m wasting my time, or that I don’t know what I’m on about. Tempting though it is to respond to this on each thread where it appears, life’s too short and I’m too lazy. So I thought I’d gather all the objections together here, in one blog, and give my answers.
Ready? Here we go.
Hate the game, not the player. You see, my letter is naive, and doesn’t even pick the right target. Apparently, grumbling into your coffee about the system which allows corporate tax avoidance is ok. Deciding not to use companies which have chosen to avoid tax is not. Unsurprisingly, organisations involved in pushing for tax justice have no problem at all with my letter, because it’s not an either/or. They understand that – to follow the analogy – you can want the game changing and pick which players you support. At the same time. Much as I’d love to think that the people who tell me ‘hate the game’ are fighting for tax justice every waking minute, I suspect they’d actually prefer the issue was ignored.
As for ‘hate’, that’s a little strong. I simply think companies – all companies – should pay into the society they’re part of. What’s the problem?
The letter writer knows nothing about economics. Yeah, right. But the people who choose to ignore the vast sum (estimated to be £4-12billion) which corporate tax avoidance costs us, yet expect roads, bridges, transport infrastructure, a police service, a fire service, ambulance crews, teachers, schools, hospitals, nurses, doctors, pensions, sick pay, tax credits, unemployment benefit, child allowance, driving licences, passports, and the civil servants who adminster them, and expect all of it to appear out of nowhere at the exact moment they need it and who throw a hissy fit if their dustbins aren’t emptied on time, they’ve got economics nailed. Yep. Sounds reasonable.
Tax is bad for business. If you argue that allowing businesses to benefit from all the services listed in the previous response is fine, but asking them to contribute some of their profit as tax revenue to help underpin the society they work in is completely out of the question, you really haven’t got a leg to stand on.
If they paid their tax, they’d probably go bust, and then people would lose their jobs. Ah yes, the ‘probably’ here means ‘I pulled this idea out of the air and haven’t a clue whether it’s true.’ Seeing as other coffee shops who *do* pay their tax make a profit – the clue being that they’re still in business – I’d say it isn’t.
The letter is anti-business. Always good to see this old chestnut being given an airing. What I’m actually in favour of is a level playing field. Why should your local, independent coffee shop pay their tax while bigger companies – with slippery accountants and sharp legal teams – get away with less?
Other companies do the same. Correct. Corporate tax avoidance is a massive problem. In fairness to Caffè Nero it’s worth pointing out that Apple, Google, Starbucks, Amazon, and others do it too. It’s somewhere next to impossible to steer clear of them all, but that doesn’t mean you have to do nothing. There are alternatives to tax-avoiding coffee chains. You can buy books online at instead of Amazon. There are other search engines than Google. And so on. If you want to throw the charge of hypocrisy at me because I typed this on a Mac, and post videos on YouTube, knock yourself out.
The letter is self-righteous twaddle. Ah, the old favourite. A classic deflection. The person making this comment doesn’t have to address what the letter says because whoever wrote it is an idiot. Well, if you can’t manage to run rings round an idiot – and so far you haven’t – what does that say about you?
As for the personal attacks from keyboard warriors and trolls, I hope you’ll understand that I won’t grant them the dignity of a response. They say way way more about the people making them than they ever could about me.
One more thing, and I’ll sign off. If you believe I’m wrong about all of this, and corporate tax avoidance is perfectly ok, then – in the interests of honesty and transparency – maybe Caffè Nero should put a big sign on their shop doors explaining why they don’t need to pay tax, Amazon add a huge banner to the home page of their website saying the same, and so on. That way customers could decide for themselves whether they wanted to support them. If it’s such a reasonable idea, why hide it away?
I’ll leave you to think about that. Enjoy your day.