We will build a progressive tax system so that wealth and the highest earners are fairly taxed, act against executive pay excess and shrink the gap between the highest and lowest paid – FTSE 100 CEOs are now paid 183 times the wage of the average UK worker, and Britain’s wages are the most unequal in Europe. We will act to create a more equal society, boost the incomes of the poorest and close the gender pay gap.
Two days ago it emerged that HMRC accepted the findings of a committee of MPs that pilloried the system that US company Concentrix used to ‘audit’ the tax credit system (read harass and impoverish working and vulnerable families).
A staggering 87% of the 36,000 who appealed had their cases upheld, and the risk was so great that some of the 23,000 who did not appeal had had their tax credit wrongly stopped that their cases are to be reviewed as well.
But winning an appeal does not automatically make things right: one woman whose tax credits were re-instated was told she could not have the back dated sum as a lump sum but rather in weekly payments over several months. This is preventing her from being able to repay payday loans taken out to deal with the shortfall when the tax credits were stopped and also bizarrely from claiming housing benefit because her weekly income has increased!!
Meanwhile the American company has received £32.5m from the public purse.
This to sort out an in-work benefit payable because instead of being rewarded by bosses for the job they do the average british worker is earning £23 less per week than in 2007, while their fat cat bosses rake in 183 times that through what can only be called theft of both the public money paid in tax credits to the low paid and the labour of their workers.
It is so unequal that by 4th Jan this year these bosses had earned more than their average worker would earn by New Year’s Eve.
Momentum must demand that the PLP and the rest of the Labour Party get behind the plans of Jeremy and of John Macdonald, promoting the discussion of the Citizen’s Income, and advocating the cap on income multiples.
We must be promoting understanding of the real value of labour as compared to the wage paid, and demanding a fair share of the wealth created by the working class.