Should we be more open to a wealth tax?

That is so right Monica. I'm not at all rich but the fact is taxing the rich does not have the desired outcome which some might expect ie the poorer will be better off. The rich incomes trickle down to communities. You tax them big and they will leave which would not benefit this country.

Plevey08

That is so right Monica. I'm not at all rich but the fact is taxing the rich does not have the desired outcome which some might expect ie the poorer will be better off. The rich incomes trickle down to communities. You tax them big and they will leave which would not benefit this country.

In what way do "rich incomes trickle down to communities"?

If this were true, our roads would be well maintained and our schools and hospitals wouldn't be falling to pieces. The super rich make sure nothing "trickles down" by squirrelling most of their money away in offshore bank accounts so they can maintain their spot on the Sunday Times Rich List.

The suggested wealth tax is a tax on assets (land, property, stocks etc.), NOT on income. Working people are already taxed up to their eyeballs on their income. A high earner doctor or TV presenter pays almost half of their salary in tax and NI contributions. While the super rich typically earn little income; instead they borrow against their assets, being able to have a lavish lifestyle while paying minimal income tax.

The wealth tax suggested in the video is 2% on assets over £10 million. According to estimates, 99% of the UK population owns less than £3 million, the median being a couple of hundred thousand (including their home and depending on age, region etc.) A wealth tax like this would apply to about 0.1% of the population.

I think it's a no-brainer that we have to start closing the loopholes and make the super wealthy pay their fair share. The only question is how it can be done.

Hmmmm. People are very happy to tax other people's money or cut other people's benefits. It's not a straightforward situation

Rich incomes trickle down through structured philanthropy and Grants. Social enterprise, start up, microfinance institutions. Systemic change by financing grassroots. Policy research and economic systems...to name but a few MollyNew

Tomas Piketty, amongst other economists I think talks about 2% on total wealth. The level at which this starts is not clear to me at present.

But when consideration is given to the current level, of total tax paid by the ultra wealthy, 2% seems very generous.

Plevey08

Rich incomes trickle down through structured philanthropy and Grants. Social enterprise, start up, microfinance institutions. Systemic change by financing grassroots. Policy research and economic systems...to name but a few MollyNew

That idea was blown out of the window years ago.

This discussion has been had on GN multiple times.

Shares, gold, art works, properties and even jewellery along with other assets of the rich can down as well as up.

Are they going to fix a day every year and assets will be assessed for all?

This has more holes than your average colander, and would be unwieldy along with extremely expensive to implement in both time and money.

I suspect that for economists who have been studying this subject for 10s of years - it will all be a deal more complex than we realise.

MollyNew

I am not prejudiced towards the wealthiest in society. However, I do object to a tiny minority accruing extreme wealth whilst many live on the breadline.

According to Oxfam, the combined wealth of the richest 56 people in the UK is more than the total wealth of the poorest 27 million (roughly 39% of the population). This cannot be good for society as a whole.

If the wealthiest rely on the poorest to work for them, clean for them, operate public services etc then they should pay more tax. They would not miss it and the poorest would have a better quality of life and be less reliant on benefits to top up their low salaries.

Yes!

But say there is a vastly wealthy person who resides in the U.K. I would expect that he/she would put in a wealth declaration each year - much like company accounts to the revenue, and once it has been agreed tax would be levied.

Revenue officers would check and agree. The declaration prepared by the persons accountant.

That is it at the most simple level - but what do I know😊

I think people get alarmed about the idea of a wealth tax because it has connotations of a redistribution of wealth when it is nowhere near that. It is obvious to most of us that there is plenty of money sloshing around at the top. The average Premier League footballer earns around £60K a week which is nearly twice the annual UK salary and they are not considered to be super rich.

The truly wealthy could make a massive contribution to the wellbeing of the general population without having to sell a yacht or sack their private chef.

There is a plethora of accountants who dedicate their lives to finding tax loopholes for their clients. Maybe the Government should consult them?