Is the ‘Tesco tax’ the best way?

The BBC reported that a group of local councils in England is formally asking the government for new powers to tax large supermarkets.  Derby City Council has apparently called for the right to bring in a levy as a “modest” effort to ensure supermarket spending “re-circulates” in local communities.   Some 19 other local authorities back a so-called “Tesco tax” on big retailers, which they say could raise up to £400m a year.

See  English councils propose ‘Tesco tax’ .

Large businesses have become disconnected from the local communities they rely on to generate their revenue and profits.  This flow of cash to large piles that are often offshore that also avoid/reduce tax payments further distances businesses from those connections.  While customer rewards and social projects go a little way to build this connectivity back, something is clearly missing.  It is another example of a broken relationship between communities and businesses.

Taxing this way is not the answer, it becomes a weapon beating successful businesses over the head.  After all, these businesses would only be as successful as they are with the help of all of us as customers.  Far better to use Givenomics – a concept whereby each customer chooses where a small percentage of each transaction goes to.  The so called “Tesco Tax” changes to become an engaging incentive/reward, the customer becomes empowered to make a difference and local communities benefit.

In fact, TheGivingMachine is already employing this with retailers like Sainsbury’s and Tesco (and over 1300 others).  If everyone in Derbyshire shopped in this way, it would generate millions for their local communities every year.

However, while Sainsbury’s donate on all purchases, currently Tesco do not pay out for groceries.  Perhaps they should because every little helps…

 

 

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