Labour - force companies to give workers shares

You can't force a company to give shares to its workers.

https://www.bbc.co.uk/news/uk-politics-45621361


And there we have it.

Full on Marxism.

About 15m people would benefit from this with few clear losers. Not sure how that'd lose the votes of people who are either existing or potential Labour voters.

There aren't many people who work directly for foreign firms. Most work for companies like 'Apple UK' or 'Starbucks UK' rather than the parent. Most of these as you know are loss making or minimal profit - Amazon UK made what £15m last year. But the subsidiaries exist.

Employees of John Lewis already own 100% of the company so that's a non-issue, they already meet the minimum requirement.

I think you're thinking of Unilever? Sure, companies can move their domicile. If their shareholders agree. HSBC gave up on the idea, Unilever are getting a rough ride on it - let's see if they get the 75%. Since Brexit hasn't shook any others to do it I doubt this would.

Dividend and corporation tax would drive that much more.

What do they think will happen in companies with 255 employees?

What about companies with 500 employees? Maybe 250 a huge rise people out of work, and only able to come back on as sub contractors or self employed?

Well, if you dilute the shares of say HSBC,Shell, Unilever , Vodafone and a few others there will be a massive number of losers- anyone with a pension scheme or insurance product invested in UK quoted companies are paying by dilution of EPS and either company cashflows are depleted by more dividends paid or dividends are cut so the total paid is the same as before spread over more shares. In effect over 10 years your earnings either retained or distributed, as a shareholder , are cut. If total return is say 8% then it just became 7%

Fine if you have a say government backed final salary scheme, they just need to up contributions (from my taxes) to cover the lost either growth or dividends paid, if you self fund or have a money purchase pension this has an impact.

And if I am an international company what do I likely do, I read the small print and then I place my quoted holding company overseas (try enforcing if the listed company is not either FTSE quoted or does not have its holding company in the UK) and trade within the UK via a 100% owned subsidiary.

There is no magic money, its comes from someone, in this case the shareholders who are mainly financial institutions investing money for people both in the UK and overseas.

It is of similar impact to the scrapping of the refund of tax credits on dividends, and who ends up benefiting, well our Treasury because the employees have a cap, the rest of the dividends they never get to see.

Simple theft.

companies will literally jump-ship and leave the UK to go to another country that doesn't steal their profits

Why haven't they already then....?

because we don't have a labour government under corbyn the nazi

Ok...?...?....

Companies love T May.

So they are ok with 19% of profits being stolen.

How much profit are companies happy to be stolen....?

People like you need to realize it is the association of the far left with Stalinism and it's various spin offs that repulses people. Getting a greater share of the wealth you help produce is not going to be unpopular ffs. The right in general has no idea how to deal with where socialist thinking has been going. 21st century socialism is not going to be about paternalistic social democracy or authoritarian Stalinism. The former is severely weakened and the latter is dead. Instead socialism is going to be increasingly about economic democracy and giving people control over their lives. For the same kind of reasons people wanted their own home means they will want to own their own work. It's the same human impulses Thatcher successfully tapped into whilst the left was busy being a removed top down bureaucracy. You guys have no clue on how to combat that. By all means get people associating an increase in pay and control over their workplace with Marxism. Do our propaganda for us.

The collapse of the Soviet Union appears to have lobotomized the right's ability to do anti-communism probably.

what on earch are you talking about what policy has theresa may introduced that takes 19% of companies profit away from them; what exact policy entitles the government to do that

Corporation tax init?
https://en.m.wikipedia.org/wiki/United_Kingdom_corporation_tax

Unless the company does a buyback, Shell is at the minute which would cover this.

You make it sound like dilution isn't a regular occurrence, board members eat from the dilution trough quite merrily and pensions/pension funds don't stop it.

Yup, I pointed out about UK subsidaries earlier.

If you have a self funded pension you get up to what 50% back as tax relief on contributions?

Indeed theft. Property is theft after all.

corbyn will make corporation tax rise to 26% so im assuming a tory pro-business gov is the most lenient it can be for a country

Ireland is 12%
Cayman Islands is 0%

Fair few real countries like Switzerland and Dubai have lower rates than the UK.

Recently the UK had a rate of 28% and in the 90s it was in the 30. Companies didn't flee then.

Ireland is 12%
Cayman Islands is 0%

Fair few real countries like Switzerland and Dubai have lower rates than the UK.

Recently the UK had a rate of 28% and in the 90s it was in the 30. Companies didn't flee then.

You may get tax relief on a pension (though not 50%), all these auto enrol pensions, where do you think they are invested, in part in shares, but most of the AE pensions scheme contributors at best get 20% tax relief on contributions and of course re 75% of the fund it will be taxed when they take their pension.People with pensions (and life bonds etc) have them for a reason, to provide for retirement, to safeguard their family if they drop dead, as a future savings vehicle, they will more often than not invest in quoted shares; this is not a raid on the wealthy but a raid on the prudent who maybe do not have a state paid pension from the civil service but rely on putting money away to tide them over when they retire.

Then you have a quoted company on a P/E of say 15, lets say it has 1 billion shares in issue each priced at £15 so a market cap of £15 billion, its earnings are therefore £1 billion post tax each year, this scheme says 1% of equity is passed to the scheme each year for 10 years, that is 10 million shares worth £150 million a year, 15% of its after tax profits each year for 10 years just went. Couple this with the 26% corporation tax Labour suggested in their last manifesto and that means for this company from every £100 of pre tax profits, £26 went in CT, and say of the £74 left 15% goes on this, a further £11., so effective rate of tax (because that is what it is) of 37%.

So UK, great place to do business, hardly, great place to save for retirement, hardly; they want to steal, over 10 years, 10% of my pension savings, something that I have taken my life to accumulate, if you dilute companies by issuing more shares the share price drops, it is very simple.

No problem re wider share ownership but stealing from existing shareholders is not the way to do it.