Lib Dem Leadership Calls For Rich To Pay Higher Tax

by Robert Lee, Tax-News.com, London

25 September 2007

Higher income tax rates for the rich have proposed again by the Liberal Democrats, after an Ipsos-Morri poll revealed that 84% of voters believe the earnings gap between the rich and poor is "much too large".

Leader of the Lib Dems, Sir Menzies Campbell, has recently argued that it's now time to "redress the balance" of wealth between the rich and poor in the UK.

The Liberal Democrats have made headlines in the area of tax in recent weeks, with proposals to campaign for the closure of tax loopholes for offshore investors.

However, there is strong opposition to the party's calls for the government to introduce a so-called "super-tax" for the wealthy.

Richard Lambert, director general of the CBI, believes that heightening taxes for the rich to reduce the wealth gap would be "disastrous" for the UK's economy, arguing that it would "cut the UK off from the benefits of open markets and free trade, and both capital and talent would drain out of our economy into someone else's".

Mr. Lambert also disagreed with the TUC's recent suggestion that too many business people are paying a low level of tax, commenting that "business is paying more than its whack".

However, he did, according to reports, agree with suggestions from the Lib Dems that more needs to be done to address the issue of tax for those living and working abroad.

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