MIND THE GAP . . .

It's Friday. The topic is financial. It's FRIDAY FINANCIAL with our resident expert JULIAN SAYER.

Poor people pay taxes and rich people avoid paying tax. How the hell can that be right? Read on . . .

MIND THE GAP . . .

It's killing you!

MILLIONS of people have an uneasy feeling that something is not right in the global economy –

but they struggle to put their finger on what exactly the problem is. Now pay attention and don't fall asleep, when I tell you the very root of the decay is tax, and in particular, the abuse of tax rules and regulations.

As I mentioned in last week's blog, the middle and working classes have endured ten years of a reducing real income, while the super-rich have got richer. The tax burden is forever increasing on the people who can least afford to pay, while the wealthy and multinational corporations are paying less and less. This scenario is widening the income inequality gap, and is the root cause of the social breakdown.

Governments have to raise tax in order to pay for the services a society needs. The more tax they can generate the better the services and pensions they can provide. If tax revenues start to decline, then those services have to be cut. If you really want the breakdown of how much the UK and where it raises these taxes from, you can find it here.

http://www.hmrc.gov.uk/statistics/receipts/info-analysis.

Tax avoidance has become a real issue of late and has to be tackled if you want an equitable society. Corporation tax avoidance is the one that has made the headlines, with companies such as Google, Amazon, Vodafone and Apple making billions in turnover but paying very little in tax.