Public Believe Businesses Dodge Tax too Easily
2 07 2008According to Trade Union Congress research published on Wednesday by YouGov, the general public believe large companies and wealthy individuals dodge taxes too easily, which has sparked an angry response from business leaders.
In the poll, three out of four people agreed it was too easy for very rich people to get out of paying a fair level of tax, while seven out of 10 said companies get off too lightly. Only 7 percent of people said the tax system struck the right balance between rich and poor.
“Creating a fairer tax system does not mean a higher tax bill for ordinary workers,” said Brendan Barber, TUC general secretary. “Instead, clamping down on tax avoidance and closing the loopholes enjoyed by the super-rich will put extra revenue into ordinary peoples’ pockets or pay for our hard-pressed public services.”
The CBI, the employers’ organisation, responded by saying that UK businesses paid almost £150bn in taxes last year, with an additional £4bnof taxes introduced in the Budget. John Cridland, deputy director-general said, “let’s dispel the notion once and for all that business is ‘getting out of’ paying its way on tax.”
“What’s more, with businesses becoming increasingly mobile, there’s a real risk that firms will simply vote with their feet if they see the UK becoming any less competitive – costing more jobs and hurting the economy at a time when it doesn’t need it.
“As a nation, we can choose whether or not we welcome high earners who generate wealth, make investments and create jobs. In a global economy, they too can vote with their feet.”
Often hotly debated amongst economists, is the question of how far the burden of corporation tax is ultimately passed on to investors.
The CBI cited research by Michael Devereux of the Oxford University Centre for Business Taxation which suggested that 92 percent of any increase in corporation tax is passed on to workers with a lower income, and hits the economy through less investment and reduced productivity.












