The Government will today announce the introduction of a new 45p top rate of tax on incomes over £150,000 - but not coming into effect until after the next General Election.
John McDonnell, LEAP Chair, said:
"The introduction of a higher rate of tax for high earners is long overdue but the Government's proposals are hardly a revolution, and delaying them until after the next election is pointless. The higher rate should be the start of creating a fair tax reform agenda, redistributing wealth from the super rich in order to take the low paid out of taxation altogether.
"The Government should also move immediately to tackle the large scale tax avoidance by the corporate sector, introducing legislation to outlaw tax havens, mirroring the Obama bill in Congress. The public revulsion over City bonuses and bank executive salaries has opened the way for radical tax reform. Government must seize the moment."
Listen to John's reaction from BBC Radio 4 Westminster Hour
Read Prem Sikka's article 'Rebalancing the Books' on Guardian Comment is Free
Update: Excellent piece by Richard Murphy on why VAT cuts won't work.
Update 2: John McDonnell on Comment is Free says "This is no time for fearful half measures"