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EVENT
After the election: what next for centre-left politics?
CAMPAIGN
High Pay Commission
PUBLICATION
The Advertising Effect
THINKPIECE
#60 Responses to Recession
Over 70% support tax crackdown on wealthy
A YouGov poll commissioned by Compass has demonstrated overwhelming public support for the government to close in on personal tax avoidance which is estimated loses up to £15BN of public money each year.
The results reveal that 77% indicated they agree that the government should do everything it can to close this £15 billion gap lost through personal tax avoidance.
In further support of the Compass call for greater tax fairness in the 2009 Budget:
- 71% agree with a new wealth tax on earnings above £250,000;
- 61% agree that the Government should break its 2005 manifesto commitment not to increase any rates of income tax and immediately introduce a new top rate of income tax for all those earning above £100,000 per year;
- 52% agree with a new tax on all bonuses above £1000.
With the financial crisis and with public borrowing rising fast the poll results pile even more pressure on the Chancellor of the Exchequer Alistair Darling and embattled Prime Minister Gordon Brown to ensure the government delivers greater tax fairness in the forthcoming Budget and therefore that any necessary tax increases are imposed on the very wealthy.
This Wednesday from 6pm Compass (with the support of The Fabian Society, Tax Justice Network UK and The Other Tax Payer's Alliance) will stage a major Tax Justice rally held at the TUC. Speakers include: Treasury Minister Angela Eagle MP, Jon Cruddas MP, Kate Green of Child Poverty Action Group, Richard Murphy of Tax Justice Network UK, the TUC's Adam Lent, PCS Deputy General Secretary Hugh Lanning and the Fabian Society's Tim Horton.
Gavin Hayes General Secretary of Compass said: "There can be no turning back to the pre-crash tax system, this poll vindicates what we'd thought all along, delivering greater tax justice is both radical and popular: whether it's closing in on personal tax avoidance, introducing a new wealth tax on those earning over £250K, immediately introducing a new top rate of tax on all those earning over £100K or a new tax on bonuses, these are just the sort of measures the government needs if it is to win back voters. The Chancellor must now demonstrate he's on the side of the many not the few, it's time he stood up, took decisive action and made sure the wealthy pay their fair share."
Leading Compass MP and former Labour Deputy Leadership contender Jon Cruddas said: "The public outrage over the economic downturn coupled with the outcry over the excesses, unchecked wealth and risky behaviour of those at the top that caused the financial crisis, has shown that we can no longer afford a pre-crash tax system that rewards a powerful elite at the top, that is why this poll has demonstrated that policies to ensure the very wealthy pay their fair share resonate across the political spectrum and is the new common sense of our time."
For more information: call Gavin Hayes on 07900 195591.
A summary breakdown/table of the full results can be downloaded here.
The Tax Justice Rally takes place at 6pm on Wednesday 15 April in the Council Chamber at the TUC, Great Russell Street, London WC1.
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Comments
on 16 April 2009, 12:36:51 PM
Being pedantic, they may be two different things but in both cases and, if time is one of the variables, by taxing one at t0 the other is effectively taxed at t1..2..n. If the taxation system itself is also a variable and income and wealth are taxed at different rates, it is all too easy to convert income to wealth, and vice versa, when it suits.
on 15 April 2009, 5:16:51 PM
on 15 April 2009, 4:15:05 PM
1. I am wary of the breathless rush. One gesture towards effective taxation of the rich in the next budget is a good idea, trying to devise a whole new tax system in a week is a recipe for disaster.
2. What we need for Labour's election manifesto is a convincing strategy for reducing the £39 billion deficit over a period of time. A large part of this should be through taxation, of which a large part should be through more effective taxation of the rich. However this requires careful thought and a review of all aspects of the tax system, income, capital gains, corporate, expenditure, wealth, land etc. Above all it needs simplification since tax avoidance flourishes on complications.
3. I understand why some will say that the above is unrealistic for New Labour. True but so was nationalising a bank. And anyway even if it is unrealistic to expect it all it is worth trying to get something. The alternative (which will certainly be the Tory alternative) will be swingeing cuts in public services and public service pensions.
4. Our tax system has always been bedivilled by micro management designed to solve last year's problem. Step forward a new tax on bonuses. They are not all extravagent or harmful. Arguably there may be a need for reference to bonuses in financial regulation but there is no need to get the tax system involved. I am not surprised that only 52% agree.
on 15 April 2009, 2:59:39 PM
By all means hammer those with high earnings. By all means end the privileges and loopholes the earnings rich are able to exploit. But without a coherent policy, which also addresses assets such as savings, rents, land, stocks, shares and other property, Compass will never contribute anything to either the content of genuinely progressive policies or to social democratic politics. But then, that is not their intention.
What makes this article particularly unconvincing is that the recent 'Left' response to the current crisis,( written inter alia by two leading Compassitas,) did at least have some modest proposals for taxing wealth.
on 15 April 2009, 1:45:37 PM
"71% agree with a new wealth tax on earnings above £250,000;"
Or are you simply ignorant?
Wealth is a stock, it´s the stuff people already have. Earnings (or income) are what comes in over a specific period. A flow in other words.
You can indeed tax either. You can tax people at 1%, 5%, 50% of their assets. You can also tax their income....at whatever rate you might want to try.
But you ain´t going to tax people´s wealth by taxing their income. They´re two different things.
Twits.
on 14 April 2009, 6:40:06 PM
on 14 April 2009, 5:32:12 PM
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