The TGWU hits the nail on the head

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The Transport and General Workers Union issued this press release yesterday:

TGWU: Chancellor should target the true tax evaders to tackle inequality
Tuesday, 20 Mar 2007 14:37
The Chancellor of the Exchequer Gordon Brown should make tackling inequality in British society the centre piece of what is widely expected to be his last Budget ahead of a Labour leadership election this year, according to the Transport and General Workers' Union.

Tony Woodley, T&G General Secretary, said:

"Brown has undoubtedly delivered Labour's trump card: a strong and stable economy, which has been the bedrock for progressive social policies. Yet Britain is still one of the least equal societies in Europe. Workers and their families are feeling the pinch of rising food, fuel, housing and transport costs, whilst bosses in the City of London celebrate record bonuses with yachts, champagne and luxury holiday homes.

"Toughening up against exploitation of UK tax laws by rich businessmen who use offshore havens to evade tax would be socially just, as would chasing the £9 billion that is estimated to be missing from businesses in tax every year. Raising the top rate of income tax to 50% for the super-rich at the same time as immediately restoring the earnings link to pensions would start narrowing the inequality gap.

"A strong economy needs a vibrant manufacturing base, which also provides high quality high skilled jobs. We expect the Chancellor to set out measures to further support and develop this vital part of the UK economy."

Notes to editors:

¬? Inequality within society is typically measured using the 'Gini' index, measuring the degree of inequality from zero (perfect equality) to 100 (perfect inequality). The latest Gini index rates the UK with a 36.8 score, compared to Germany at 30.0, Spain at 32.5, Sweden at 25.0 and France at 32.7. Only Estonia at 37 rates higher than the UK amongst EU nations.

¬? A study found that the largest 50 UK companies paid £20bn less in tax on profits during 2000-2004 than what was expected, calculating that across British business, the 'expectation gap' amounted to £9 billion every year (Mind the Tax Gap, Tax Justice Network, 2006).

I had no engagement with those who wrote this, but I can wholeheartedly endorse it, and I'm quite happy with the use to which my research has been put.


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