A CRACKDOWN on income tax avoidance must take priority over public spending cuts, says the North West TUC.
The call comes after it was revealed that the wealthiest 2 per cent of taxpayers are dodging the new 50p rate of income tax.
And Lord Myners, the City Minister (left), cast doubt on whether the Treasury would pocket the forecast £1.3billion from the new tax rate this year and £2.5 billion next year.
According to The Times, Lord Myners told peers that “behavioural consequences of the new higher rate of taxation” — shorthand for tax avoidance — had forced the Treasury to lower its expectations.
Mike Warburton, senior tax adviser at Grant Thornton, one of Britain’s biggest accounting firms, said: “People are taking obvious avoidance measures because they are not prepared to pay 50 per cent tax.”
But Alan Manning, Regional Secretary of the North West TUC called for tough action against tax dodgers.
He said: “The first priority must be to bring in the money that people owe. If they try to avoid paying their rightful share, then they must be pursued with the full weight of the law.”
Mr Manning added: “Rather than public servants paying the price for this recession in redundancies, pay freezes and service cuts, its only fair that those who can afford to pay a little bit more should do so.
“These are the richest people in the country – they should give something back when times are hard for everyone.”
Lord Myners agreed. He said: “The broadest shoulders must quite rightly bear the greatest burden.”
The tax change means that anyone earning more than £150,000 a year will be subject to a 50 per cent top level of income tax.
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Cllr Jonathan Reynolds, Labour, Stalybridge and Hyde
Jane Rogers, grandmother
