(1888PressRelease)
October 12, 2007 - Alistair Darling, the chancellor of the exchequer, will today reveal plans to increase the tax payable by private equity bosses in a move designed to appeal to traditional Labour supporters.
According to the Guardian, Mr Darling will unveil "something substantial" concerning the way private equity bosses pay tax in response to Conservative party leader David Cameron's proposal to introduce a flat £25,000 tax on UK residents non-domiciled for tax purposes should he be elected.
It is thought that he will attempt to close a loophole which allows private equity bosses to treat directors' income as a capital gain, meaning it is subject to a mere ten per cent rate of tax.
However, the Confederation of British Industry (CBI) has warned that the government must be careful it doesn't drive wealth creators abroad.
"In these febrile political times, the government must guard against seemingly populist measures targeted at private equity companies or the individuals who run them," it said.
The government has come under pressure from union bosses recently to crack down on the "super-rich" and ensure they pay "a fair share of their income".
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