Those who earn a lot should pay a lot, says Post Office bossComments Off on Those who earn a lot should pay a lot, says Post Office boss
Tim Parker, the tycoon recently appointed to chair the Post Office and National Trust, today launched a scathing attack on boardroom pay and called for income tax to be increased on the wealthy to 50%.
Speaking just days after the Chancellor cut taxes for the relatively well off, Parker told Management Today: “A free-market system needs citizens to believe that the method of redistributing income is fair and effective. If you earn a lot, you should pay a lot in tax… There’s a perception that a small raft of executives are doing very well indeed, and that causes disquiet. Paying roughly half seems entirely fair to me.”
The present additional rate of tax for earnings above £150,000 is 45%. Parker’s wealth is put at £185 million by the Sunday Times Rich List.
The businessman, who earned the nickname Prince of Darkness during his time cutting jobs at Kwik-Fit and the AA for their private equity owners, also criticised directors’ pay at big, quoted companies. “You need to be aware of your reward relative to others who work in that organisation.”
He also condemned inherited wealth, saying it disrupts the market the general population is asked to believe in, particularly in London and the South-East, where high property prices enrich homeowners and those who inherit from them.
He said: “Is wealth yours when you die? Should assets stay with estates? It really surprises me how little discussion we have about this.”