CBI boss warns on knee-jerk tax reaction
Lambert fears ‘new capitalism’ and increasing income inequality could force a political backlash
The head of the CBI has warned against a
knee-jerk reaction to demands for increased taxation of private equity returns,
but said an effective tax system needed to be seen to be fair.
Richard Lambert, director-general of the employers’ organisation, added that
while the issue of non-domicile tax status needed to be looked at carefully, he
feared entrepreneurs could be driven out of London into the arms of New York,
reports
The
Times.
Speaking at a conference in London yesterday, Lambert said the new capitalism
of hedge funds and private equity ‘is adding to the general sense of insecurity
and unfairness that is already a consequence of global trade and technology.’
He added: ‘A big question is whether and how this concentration of wealth and
income will play into democratic politics.’