Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: https://archive.socialistparty.org.uk/issue/519/3737

From The Socialist newspaper, 6 February 2008

Rich avoid paying £25 billion tax bill

A NEW report, sponsored by the TUC, accuses companies and rich individuals of using accounting tricks, loopholes and plain tax avoidance to get out of paying a cool £25 billion of tax each year. That is equivalent to £1,000 a year for every worker in Britain.

Roger Shrives

Britain's top 50 companies paid an effective corporation tax rate of 22.5% instead of the 30% it was at the time of the TUC survey. The Labour government has now brought the official figure down to 28% and big business will undoubtedly have reduced the true figure even further since.

In all, the report concludes that wealthy individuals avoided £13 billion tax and big corporations avoided £12 billion. The TUC, quite rightly, calls for an end to the government's threats to HM Revenue and Customs staff jobs ie tax inspectors. But it has no real solution to the problem of how to gain more equality.

As 'Old Labour' MP Austin Mitchell and accounting expert Prem Sikka point out in a recent article, the wealth of the super-rich has trebled in the past decade. Meanwhile, half of the adult population now owns less than 1% of the wealth, if you exclude the value of dwellings. 23% of adults have wealth of less than £5,000.

But the poorest 20% of households have the highest tax burden, paying 36.4% of their total income in tax, 9.5% of it direct tax, 26.9% indirect tax. The average (median) wage is £23,764 so most workers are living on very little except personal debt.

In 2006, 54 billionaires had a combined fortune of £126 billion but only paid £14.7 million in income tax - that is 0.01% of their total wealth! With a new recession approaching, such inequalities will become even more intolerable.

Socialists would certainly support Mitchell and Sikka's proposals for lower or even no taxation for the low-paid and their call for a more aggressive response to organised tax avoidance by the super-rich.

We would link it with a call for a campaign to take these powerful, irresponsible firms into public ownership. That is the best way to ensure the fat cats and their accountants do not fiddle their way out of paying for such services as health and education. Now if the TUC could start campaigning on that basis...!

Donate to the Socialist Party

Finance appeal

The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

  • The Socialist Party's material is more vital than ever, so we can continue to report from workers who are fighting for better health and safety measures, against layoffs, for adequate staffing levels, etc.
  • We must be ready for the stormy events ahead and the need to arm workers' movements with a socialist programme - one which puts the health and needs of humanity before the profits of a few.
Inevitably, during the crisis we have not been able to sell the Socialist and raise funds in the ways we normally would.
We therefore urgently appeal to all our viewers to donate to our Fighting Fund.

Please donate here.

All payments are made through a secure server.

My donation

 

Your message: 

 


In The Socialist 6 February 2008:

MPs' insult to low-paid workers

Their hands in our till

Protests as multinational grabs health centre

Rich avoid paying 25 billion tax bill

Why they call them 'fat cats'


War and terrorism

Bush and Brown's Afghan strategy lies in tatters


Socialist Party women

Fight attacks on abortion rights


Socialist Party news and analysis

Victory! Bristol campaign saves library

Victory! Hull youth workers save jobs

Inspiring victory for Polish workers

Fighting the BNP in Barnsley

Shell output is down, but profits hit new record


Young workers and Students

Young workers get organised

Protest against university fees

Refreshing student work in Bangor

International Socialist Resistance website

Socialist Students website


Environment and socialism

Incinerators: Our health at risk!

Stop the Anglesey nuclear time-bomb


Socialist Party debate

How can an alternative to the main political parties be developed?


International socialist news and analysis

Kenya: Workers' movement must provide an alternative

France: LCR votes to launch a new party


Workplace news

Birmingham: Thousands on strike against pay cuts

Workplace news in brief


 

Home   |   The Socialist 6 February 2008   |   Join the Socialist Party

Subscribe   |   Donate  




Related links:

Tax:

triangleCut our fuel bills - nationalise energy

triangleCost of living crisis

triangleRob Windsor - remembering a tireless fighter for socialism

triangleRace to top for bankers

trianglePay NHS and care staff to address worker shortages

Rich:

triangleOxfam 'Inequality Kills' report

triangleWar in Yemen, made in Harlow, profit for rich

triangleSuper-rich get richer, while we can't make ends meet. Join the fightback!

triangleBlair knighted for services to the rich and powerful

TUC:

triangleSocialists and the four-day week

triangleClick here for a report. Speakers included: Sharon Graham - newly-elected Unite gen sec; Sarah Woolley - BFAWU gen sec; Carmel Gates - Nipsa gen sec (designate); Joe Simpson - POA deputy gen sec; Joe Kirby - RMT NEC & offshore worker

triangleNSSN to lobby TUC

Reports and campaigns

Reports and campaigns

23/2/22

Cardiff

Restore Cardiff's slashed services

23/2/22

Pay

Just Eat couriers continue action to fight pay cut

23/2/22

UCU

University workers continue strike against bosses' attacks

23/2/22

London

Tube workers strike in defence of pay, pensions and conditions

23/2/22

Students

Workers and students unite and fight

23/2/22

Fees

Fighting fees and marketisation after 2 March student walkout

23/2/22

Brighton

Brighton Green and Labour cuts - workers and communities fight back

23/2/22

Anti-cuts

Surrey: Unions and campaigns say stand as an anti-cuts candidate

23/2/22

Newham

Newham City Farm - closed with no consultation

23/2/22

Women

London Socialist Party women's meeting

23/2/22

Socialist

1 March: Socialist Party new website launch

23/2/22

Coventry

Coventry bin strikers lobby strike-breaking Labour council

23/2/22

Strike

Scunny scaffs action forces bosses to the table

23/2/22

Usdaw

Usdaw: 'Reinstate Max' week of action

23/2/22

Anti-cuts

Trade union support for standing anti-cuts election candidates

triangleMore Reports and campaigns articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party
Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

LATEST POSTS

CONTACT US

Phone our national office on 020 8988 8777

Email: [email protected]

Locate your nearest Socialist Party branch Text your name and postcode to 07761 818 206

Regional Socialist Party organisers:

Eastern: 079 8202 1969

East Mids: 077 3797 8057

London: 020 8988 8786

North East: 078 4114 4890

North West 079 5437 6096

South West: 077 5979 6478

Southern: 078 3368 1910

Wales: 077 7221 5281

West Mids: 024 7655 5620

Yorkshire: 078 0983 9793

ABOUT US

ARCHIVE

Alphabetical listing


August 2022

July 2022

June 2022

May 2022

April 2022

March 2022

February 2022

January 2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999