Unite: Tax the culprits of the credit crunch

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Monday, 29, Sep 2008 12:00

Derek Simpson, joint leader of Unite, Britain's biggest union, is calling on the government to tax the culprits of the credit crunch and not hard-working families.

With central banks having to bail out the world's banking system, Unite is demanding that the UK government makes sure the culprits of the credit crunch pay their fair share of tax. Working people must not be allowed to fund massive tax concessions for the super-rich and Britain's top companies.

Unite joint general secretary, Derek Simpson, said:

“The Bank of England are having to bail-out Britain's banks because of greed and excess. I say to the government, tax the culprits of the credit crunch , not hard - working families.

“The government must close the loopholes that allow super-rich individuals and corporations to avoid paying their fair share of tax.

“Barack Obama has committed to closing many of the tax loopholes that don’t help America. The eras of Thatcher and Reagan and Bush and Blair are over. We are entering a new era and working people need a progressive tax system which ensures that the greatest burden falls on the widest shoulders.”

It is estimated (Tax Research UK) that the value of tax avoidance by Britain's top companies is worth some £25 billion a year. This figure does not include tax avoided by rich individuals which runs into billions too.

According to Tax Research UK, the top 100 companies in Britain have on average reduced their tax payments on profits by 5% over the last five years. It is now believed that the effective tax rate of the top 50 companies is as low as 22% and this has all been done legally. Tax is avoided by way of tax relief, allowances and the absence of restrictions on the movement of capital to tax havens.

ENDS

Contact: Ciaran Naidoo 07768 931 315.