Great news from Scotland and Wales where politicians have taken action to ban companies based in tax havens from getting bailouts.
This is a step forward in our campaign to ensure we bailout the workers, not tax haven billionaires.
Some companies have dodged their obligation to pay a fair share of tax in good times, only to seek bailouts when times get tough. It is right that we should protect jobs at this difficult time, but it is equally true there should be conditions to force responsible tax conduct on organisations that get support.
Westminster is well behind the curve on this issue. So Tax Justice UK has launched a petition to prompt MPs in London to get their act together on an issue of genuine concern to the public.
All governments need to go further and implement the Fair Tax Mark’s conditions for a fair tax bailout.
We want the Chancellor, Rishi Sunak, to take action and ensure that any bailouts come with conditions attached so companies pay their fair share of tax. You can sign the petition here.
The very richest are benefiting from lower tax rates to an extent not previously realised, meaning inequality in the UK is higher than thought.
An analysis of the tax returns filed by some of the richest people in the country by academics at Warwick and the London School of Economics, found a rising number of individuals recording millions of pounds of income as “business activities” rather than work.
The current rate of capital gains tax for higher earners can be as low as 10% once tax relief is taken into account compared to 45%, the highest rate of income tax.
The research concludes that inequality has been significantly higher in the UK over the past 20 years than previously assumed. This is because the Office for National Statistics does not include capital gains in its assessment of inequality in the UK.
Tax Justice UK Executive Director, Robert Palmer, said: “This groundbreaking study shows that the ultra wealthy have been able to reclassify their income as wealth in order to benefit from lower tax rates.
“It’s truly staggering when we consider the impact this has had on overall inequality in the country. The gap between rich and poor is bigger than thought and this has implications for people’s lives.
“But the government can do something about it: tax income from wealth the same as income from work. As we come out of the coronavirus crisis, this is precisely the type of measure the government should implement. Polls consistently show that the public would support such a move.”
The report, Capital Gains and UK Inequality, finds:
Research by the IPPR estimates that up to £90 billion could be raised over five years for public services if CGT was brought into alignment with income tax.
Arun Advani, Assistant Professor, University of Warwick and Andy Summers, Assistant Professor LSE Law,
International Inequalities Institute will present their findings at a Resolution Foundation seminar: The Hidden Rise (and Fall?) of the top 1% on Thursday 21 May.
A new opinion poll has found the public supports a wealth tax for people with assets over £750,000.
The 1,682 person YouGov poll reveals the public wants a different way of doing business once the corona epidemic is passed, it found:
Robert Palmer, Executive Director of Tax Justice UK, said: “The public are hungry for a new deal when we rebuild after this crisis. The government is under huge public pressure not to cave into supporting tax haven companies and it is clear that Brits want to see those who can afford it to shoulder a greater part of the burden to help pay for public services. The message is clear, no more business as usual.”
Tax Justice UK is calling for any corporate bailouts to follow the conditions laid out by the Fair Tax Mark, including requiring companies to lift the lid on their tax affairs, disclose who ultimately profits from their activities, and not use tax havens and tax avoidance structures.
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1,682 adults. Fieldwork was undertaken between 7th - 11th May 2020. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
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