--- title: "Meaning & Key Takeaway of: The British use a system where the…" description: "\"The British use a system where the profits a corporation reports to shareholders is what they pay taxes on. Whereas in America we require corporations ..." image: "https://sms4smile.com/quotes/i/bb5/david-cay-johnston-10155_book_the-british-use-a-system-where-the-profi_1070715.jpg" --- # The British use a system where the profits a corporation… ![“The British use a system where the profits a corporation reports to shareholders is what they pay taxes on. Whereas in America we require corporations to keep two sets of books, one for shareholders and one for the IRS, and the IRS records are secret. For publicly-traded companies, the British…” quote by David Cay Johnston](https://sms4smile.com/quotes/i/bb5/david-cay-johnston-10155_book_the-british-use-a-system-where-the-profi_1070715.jpg) [Download](https://sms4smile.com/quotes/i/bb5/david-cay-johnston-10155_book_the-british-use-a-system-where-the-profi_1070715.jpg) [Open image](https://sms4smile.com/quotes/i/bb5/david-cay-johnston-10155_book_the-british-use-a-system-where-the-profi_1070715.jpg) > “The British use a system where the profits a corporation reports to shareholders is what they pay taxes on. Whereas in America we require corporations to keep two sets of books, one for shareholders and one for the IRS, and the IRS records are secret. For publicly-traded companies, the British system would tend to align the interests of the government with the interests of the company because the company wants to report the biggest possible profit. Though, all wealthy countries have high taxes as wealth requires lots of common goods, from clean water to public education to a justice system.” [David Cay Johnston](https://sms4smile.com/quotes/author/david-cay-johnston/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. The British tax system ties corporate profit reporting to shareholder earnings, aligning government and company interests, while the US requires separate reporting, creating secrecy and potential misalignment. **In simple terms:** UK taxes corporate profits as reported to shareholders; US uses separate, secret books. Key Takeaway Recognize how tax structures affect corporate transparency and public goods. Themes tax policy government corporate governance public finance transparency Mood analytical critical informative Type policy analysis educational When to use this quote - corporate financial reporting - government budgeting - public policy debates - tax reform discussions Key Concepts tax alignment reporting standards public goods funding Questions to Reflect On - How do differing tax reporting rules shape corporate behavior? - What reforms could improve transparency? A Different Perspective US system may obscure true profitability, hindering accountability. ★ ★ ★ ★ ★ No ratings yet [Book](https://sms4smile.com/quotes/about/book/) [Books](https://sms4smile.com/quotes/about/books/) [Clean water](https://sms4smile.com/quotes/about/clean-water/) [Common good](https://sms4smile.com/quotes/about/common-good/) [Corporations](https://sms4smile.com/quotes/about/corporations/) [Country](https://sms4smile.com/quotes/about/country/) [Interest](https://sms4smile.com/quotes/about/interest/) [Justice](https://sms4smile.com/quotes/about/justice/) [Justice system](https://sms4smile.com/quotes/about/justice-system/) [Public education](https://sms4smile.com/quotes/about/public-education/) [Secret](https://sms4smile.com/quotes/about/secret/) [Taxes](https://sms4smile.com/quotes/about/taxes/) [Water](https://sms4smile.com/quotes/about/water/) [Wealth](https://sms4smile.com/quotes/about/wealth/) ## Related quotes > [Governments cannot require individuals, they cannot require the public as a body, and they cannot require corporations to make investigation and law enforcement easy…](https://sms4smile.com/quotes/edward-snowden/governments-cannot-require-individuals-they-cannot-require-the-public/) [Edward Snowden](https://sms4smile.com/quotes/author/edward-snowden/) > [Simply cutting the taxes for America's wealthiest families is clearly not creating the needed new jobs, and that strategy is unlikely to succeed in…](https://sms4smile.com/quotes/tim-johnson/simply-cutting-the-taxes-for-america-s-wealthiest-families-is-clearly/) [Tim Johnson](https://sms4smile.com/quotes/author/tim-johnson/) > [I fought for the U.S. government. 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