Tax ...and the rich get richer
WORKERS, JULY 2007 ISSUE
Gordon Brown once boasted that he'd "squeeze until the pips squeaked". Well, he didn't have Britain's super-rich in his sights when he said it: 85 per cent of the 400 people thought to earn more than £10 million a year don't pay income tax – around £2 billion in lost revenue.
Four representatives of private equity companies boasted to the Commons Treasury Select Committee that they were good for jobs and good for profits. From that, they argued that should continue to pay as little as 5 per cent on their earnings.
Meanwhile, normal people have cut discretionary spending by 6 per cent this year in order to meet higher pension contributions, household costs and mortgage repayments. A study by Ernst & Young shows we're having to meet above-inflation rises on fixed costs such as council tax, water rates, pensions and petrol. Average monthly mortgage repayments, at £700, are now 65 per cent higher than they were in 2003.