Wed 8 Nov 2017, 08:16 AM | Posted by Guest Blogger
Guest Blogger is Mark Langabeer, Newton Abbot CLP personal capacity
There was a good programme broadcast on BBC2 last week, called the ‘super- rich and us’ and it contained plenty of information on the growing disparity of wealth and income in Britain.
The programme reported that Britain has 104 billionaires and as a proportion of the population, this is greater than any other nation. Since the crash of 2008 the wealthiest have increased their wealth by £70b.The majority of Britain’s population have seen a stagnation in their incomes over the same period.
Britain has long been an attraction for the wealthiest international, due to the availability of ‘non-dom’ status. Non-doms (ie non-domiciled) are only required to pay a fixed sum of £30,000 annually. This is chicken-feed for the super-rich and Britain now has the reputation as the tax-dodging capital of the world.
The programme charted the beginnings of this process, with the election of the Tories in 1979, where top income tax rates were slashed from 83% to 60%. The justification for this was that it would ‘encourage investment’ and the benefits would ‘trickle down’ to the rest of us. The past decade have proven this theory to be false and rather than being a benefit, the activities of the super-rich has been detrimental to the rest of society.
The super-rich have invested in property and along with the rise of the buy-to-let barons, this has fuelled the house price bubble. The programme gave the example of Oxford, where at one time the price of the average home was 3 times the average wage. Now, it is 11 times the average income.
The programme also focused on the cosy relationship between big business and senior tax officials. Many end up in the private sector, advising on tax affairs. Tax evasion and avoidance appears rampant. Once of the latest scams involves the Isle of Man and private jets supposedly located on the Island. This was raised by Corbyn at last week’s PMQ’s.
The programme presenter interviewed Thomas Picketty, a noted radical economist who suggested the implementation of a wealth tax. Although this should be welcomed, it would face similar challenges as the super-rich invest in expensive jewellery or watches and as easy-to-hide cash.
The programme revealed that the Tories have cut public spending by £80b since 2017, which is equivalent to the amount paid in bankers’ bonuses over the same period. The nationalization of the mayor banks would be a far better solution in ending this scandal.
The Tories argue that to raise top income taxe rates would mean a lowering of revenue from the super-rich. What they really mean is that the rich will either scarper or cheat even more. The luxury lifestyle of the so called 1% is in reality the unpaid-labour of working class. It is time the labour movement ended this rotten system once and for all.
