Rishi's proposed 'wealth tax'

[Suspect Device 1,486]

 

The idea seems to be gaining traction with those in favour believing it would help pay for the massive spending on covid.

Would it be a one off?

What level would it start at and what percentage would it be set at?

How can you make sure people can't avoid it and how do you make it simple enough to calculate a person's wealth and collect?

Wealth tax: FT Money readers are divided | Financial Times

Quote

As the costs of the coronavirus pandemic mount, a fierce debate is gathering pace over how the UK will pay for the measures to counter Covid-19. Chancellor Rishi Sunak has many options. But in terms of controversy, one radical idea stands out — a wealth tax. Advocates argue that a tax on assets would reduce inequality, shore up public finances and ensure that those with the broadest shoulders carry the greatest financial load. However, opponents believe it would unfairly penalise savers, be hideously complicated and expensive to implement, discourage entrepreneurs and drive wealthy people out of the UK. Opinion polls indicate general public backing for wealth taxes. But the devil is in the detail — support is typically predicated on exempting key assets held by large swaths of the population — including the main home and pensions. In other words, most supporters, not surprisingly, prefer taxes that will hit people richer than themselves. Stepping into this growing debate, FT Money has conducted an online survey to offer readers the chance to shape the arguments. FT readers marginally favour a wealth tax The 1,300 people who responded are sharply divided on a future wealth levy. Exactly half of those surveyed said they would support a wealth tax — with 32 per cent definitely in favour and 18 per cent saying they probably would be. But 45 per cent of readers opposed such a tax, with 32 per cent definitely against and 13 per cent saying they would probably not support one. The remainder were not sure. With above-average incomes and assets, FT readers are somewhat less inclined to support wealth taxes than the general population. An Ipsos Mori survey released last week found that 75 per cent of people backed a levy on assets — with the most popular starting threshold given as £500,000. But Arun Advani, an assistant professor at the University of Warwick, says he is “surprised” that the FT readers’ support level was only “a bit less” than in national polls. “Even among this crowd, half of them are in favour of a wealth tax.” The FT’s findings will hearten wealth tax supporters, such as campaign group Tax Justice UK. Its executive director Robert Palmer says: “As we build back from the coronavirus crisis it's likely that taxes will have to go up to support higher public spending. It’s only right that people with the broadest shoulders should contribute more.”

 

[Henderson to deliver ..... 13,024]

I'm going to be brutally honest here, I'd much prefer to guillotine them and take it all.

[strichener 1,560]

26 minutes ago, Henderson to deliver ..... said:

I'm going to be brutally honest here, I'd much prefer to guillotine them and take it all.

From everyone, or I'm common with those highlighted in the OP, only those with more than yourself?

I think it is an interesting concept but I would rather see the tax being levied at the income or asset appreciation to prevent hideous wealth in the first place.

[Suspect Device 1,486]

30 minutes ago, Henderson to deliver ..... said:

I'm going to be brutally honest here, I'd much prefer to guillotine them and take it all.

At what level of wealth does your chopping start?

And are you including property and pension. I might be worried.

 

[BFTD 6,085]

Years from now, we can all look forward to the inevitable study demonstrating that, despite all claims to the contrary, the people at the lowest end of society paid proportionately more than the "wealthy".

All in it together.

[Henderson to deliver ..... 13,024]

1 minute ago, Suspect Device said:

At what level of wealth does your chopping start?

And are you including property and pension. I might be worried.

 

I'd start with anyone who has reached a level of wealth where they feel obliged to try and hide their wealth and assets abroad or indulge in tax avoidance loopholes.

Anyone earning at least 3x the average uk wage should be taxed more also.

[The Skelpit Lug 1,579]

Good that the debate is starting. Get it out there for a wee while before all the current crop of tax dodging, oops, tax avoiding, basturds laugh their heads off as disproportionate tax hits land on the rest of us.

[Suspect Device 1,486]

2 minutes ago, Henderson to deliver ..... said:

I'd start with anyone who has reached a level of wealth where they feel obliged to try and hide their wealth and assets abroad or indulge in tax avoidance loopholes.

Anyone earning at least 3x the average uk wage should be taxed more also.

Not sure they feel obliged. I think they're just fucking greedy.

Anyone earning 3x the average wage is paying the top rate. Would you increase the top rate? What to? 

[Henderson to deliver ..... 13,024]

15 minutes ago, strichener said:

From everyone, or I'm common with those highlighted in the OP, only those with more than yourself?

I earn less than the average UK wage, so that would seem a bit extreme as that would be a hell of a lot of people.

Given that I'm one of those people who think that 99.9% of people are arseholes, I'm sorely tempted.

[Henderson to deliver ..... 13,024]

3 minutes ago, Suspect Device said:

Not sure they feel obliged. I think they're just fucking greedy.

Anyone earning 3x the average wage is paying the top rate. Would you increase the top rate? What to? 

They currently pay 40% right ?

Let's bump that up to 50% for starters.

[O'Kelly Isley III 2,890]

Given that the man charged with considering and/or reviewing the introduction of any wealth tax is himself a former hedge-fund manager from a personal background of eye-watering wealth, please allow me to set my expectations exceedingly low on this one.

[welshbairn 18,845]

15 minutes ago, Henderson to deliver ..... said:

They currently pay 40% right ?

Let's bump that up to 50% for starters.

It's a bit of a con, as when you hit the threshold for the higher tax rate, your NI contributions drop from 12% to 2%.

Edited December 20, 2020 by welshbairn

[BFTD 6,085]

2 minutes ago, O'Kelly Isley III said:

Given that the man charged with considering and/or reviewing the introduction of any wealth tax is himself a former hedge-fund manager from a personal background of eye-watering wealth, please allow me to set my expectations exceedingly low on this one.

You don't even need to go that far; "Tory floats idea of taking more money from the rich to pay for government" is as ludicrous and disingenuous a notion as it gets.

8 minutes ago, Henderson to deliver ..... said:

They currently pay 40% right ?

Let's bump that up to 50% for starters.

I love when discussions about increasing tax rates come up and it becomes obvious that the most outraged contributors seem to genuinely believe that (say) a 50% higher rate means that the government want to keep half of everything they make. Never sure if it's stupidity or an attempt to elicit undeserved sympathy from folk who'll never need to consider such issues.

[Henderson to deliver ..... 13,024]

Thinking about this hero.

[BFTD 6,085]

He's not in the top 5% though.

Facts may say otherwise, but he's just not, OK?

[Granny Danger 16,810]

I’d start by bumping up Corporation Tax to about 22%.

This would affect me as much as any other measure but it’s still a good idea.

[NotThePars 8,200]

[NotThePars 8,200]

1 hour ago, Suspect Device said:

At what level of wealth does your chopping start?

And are you including property and pension. I might be worried.

 

Make it like Final Fantasy games where your max output is 99,999

[BFTD 6,085]

54 minutes ago, Granny Danger said:

I’d start by bumping up Corporation Tax to about 22%.

This would affect me as much as any other measure but it’s still a good idea.

They're all on to that, are they not? Just make sure you invest all of your profits into further global domination and you're all set.

Unless your idea is that the extra 3% of your company income would pay for everything lost during the pandemic, in which case...why, hello there, big boy  

[Detournement 1,741]

It'll start off as a wealth tax and end up chopping everyone's current account that is bulging due to Covid. The public have saved over £100 billion so far, obviously it's not evenly spread but everyone who remained employed and most people on furlough will have a good bit more cash than they did 12 months ago. 

One of the biggest issues going forward is going to be how to handle Boomer wealth being handed down to their kids when they kick the bucket. If inheritance laws don't change then  inequality is going to be a huge issue. Housing asset inflation is obviously the biggest contributor to that but there are ever increasing numbers of people with private pensions that will keep growing due to the stock market now being a Ponzi scheme that can't lose. The Tories Dementia tax was clearly designed with this in mind and they will definitely return to it at some point.