Region's Tory MEPs back super-rich tax dodgers - Watson (St Ives Liberal Democrats)

St Ives Liberal Democrats <trevorandrea131@aol.com>

Region's Tory MEPs back super-rich tax dodgers - Watson

February 12, 2009 5:31 PM
Originally published by Sir Graham Watson MEP

Graham Watson MEP with Lib Dem Treasury spokesman Vince Cable MP

The South West Liberal Democrat MEP Graham Watson slammed two of the region's Tory MEPs (Giles Chichester and Caroline Jackson) for failing to back measures to stop the super-rich avoiding paying their share of taxes whilst hard working families do.

Commenting today Graham Watson said-

"If ever proof were needed that for all of David Cameron's spin the Tories haven't changed, this is it. Voting against this simple measure to crack down on tax havens, is a kick in the teeth for hard working tax-payers. It's a disgrace that low and middle income earners struggling with the credit crunch pay a higher whack of their income in tax than the super-rich.

When in power the Tories oversaw tax hikes which rose for the poor far faster than they did for the rich. It appears the West's Tory MEPs Giles Chichester and Caroline Jackson are happy for the super-rich to pay fancy accountants to exploit tax loopholes whilst everyone else foots the bill!

The Tories' economic plans are ill-thought out and irresponsible and could make the tax system even more unfair. Neither Labour nor the Tories are committed to

closing the loopholes and unfair exemptions enjoyed by the wealthy. It's ordinary people and families that really need the tax breaks."

Editors Note;-

According to the independent Institute for Fiscal Studies during the years when the Conservatives were in power, inequality rose sharply and taxes increased faster for the poor than the rich. David Cameron was advising Norman Lamont on Black Wednesday. Under Labour income and wealth inequalities are as bad as under the Tories.

The wealthiest 1% of Britons own 21% of the wealth in the country whilst the least wealthy 50% share only 7%. (Source: ONS)

Taking all taxes together, the poorest 20% pay 36.4% of their income in tax, compared to just 35.6% for the richest 20%.

Most people are paying 40% tax on relatively moderate incomes who will also pay inheritance tax at 40 per cent and stamp duty at three to four per cent. The rich and well-advised exploit loopholes and end up paying 10% tax. Non-domiciles taking advantage of offshore trusts avoid Capital Gains Tax and people avoid stamp duty by registering their house as being owned by a company.

Yesterday a majority of MEPs backed an amendment to a Parliamentary report on a European Economic Recovery Plan calling for action against tax havens. The measure was backed by 540 MEPS, 104 voted against, with 18 abstentions. The amendment backed by Graham Watson states

"Strongly supports the decision of the European members of the G20 to take definitive action against tax havens and uncooperative jurisdictions by agreeing on a toolbox of sanctions as soon as possible, to be endorsed at the London Summit; recommends that the EU should adopt at its own level the adequate legislative framework to restrict business with those jurisdictions; underlines that global convergent approaches are essential in order to tackle the issue."