British Trade Unions Say Richest Must Be Taxed More

May 10, 2008 1:14 a.m. EST

London, England (AHN) - The GMB, one of the largest labor unions in the United Kingdom, has suggested higher taxes on wealthy Britons to soften the impact of the global financial crisis on the British economy.

Joining GMB in its fight is Unite, Britain's biggest union, which wants to shift the burden in the country's taxation system from low-income earners to big business. Unite will make its formal proposal when the nation's labor unions sit down with the Cabinet in July.

GMB is eyeing the lifting of the cap on national insurance contributions. A GMB member told the Financial Times, "The broadest shoulders should carry the heaviest loads."

Meanwhile, European Union Trade Commissioner Peter Mandelson, in a BBC interview, said British Prime Minister Gordon Brown made a very big mistake in removing the 10 percent income tax rate. He said the scrapping violated the party's philosophy that government must help society's poorest.

Mandelson said the Labor party could still win in the next election if Brown would stick to the party's four key pillars of fiscal discipline, investment and public service reform, assisting the poor and maintaining strong relations with Europe and the U.S.