UNISON, the UK’s largest union, today called on the Chancellor to introduce a tax rate of 50% on income above £100,000 to sustain investment in our public services and to tackle poverty pay and pensions.
The union wants the Chancellor to stand firm on fair and progressive taxation. UNISON is seeking:
*an alternative approach to expensive PFI/PPP by letting public authorities
borrow to invest;
*to tackle poverty through a living wage, child support, restoring the pensions link with earnings and raising the basic state pension ;
*a new higher rate of income tax of 50% for income above £100,000 (this
would raise £2 billion a year and is supported by 57% of the population);’
*to enhance local taxation by restoring business rates, removing capping and making council tax more progressive;
*a ‘Tobin’ tax on short term currency speculation;
*the closure of tax loopholes for corporations and wealthy individuals;
*to return Corporation Tax on large companies to 33% from 30%;
*to increase environmental taxes on ‘bads’ such as pollution;
*to extend the zero rate band for National Insurance contributions to bring the low
paid and part time into the NI system and make employers pay national
insurance on all earnings.
General Secretary, Dave Prentis, said:
“We want to see the budget 2003 deliver for public services, pensions and poverty. Progressive and fair taxation is the way to fund our public services and to tackle poverty pay and pensions. Everyone benefits from decent public services, even employers who benefit from a healthier, better educated workforce.
“We would like to see the earnings link for the basic state pension restored and then a further increase in it because too many pensioners are being dragged into means testing. Final salary schemes should be promoted and protected, with employers being made to contribute with no pension holidays, and no raising of the retirement age.
“Although the new child and working tax credits, which came into effect this week, are a welcome boost, tax credits are inefficient in the public sector because they just move money between Government departments. A higher minimum wage would reap benefits all round.”
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