Should we be more open to a wealth tax?

Barbadosbelle

Apple3pie

Facts ...

30% of ALL tax received in the U.K is paid by the top 1% of earners.

60% of ALL tax received in the U.K is paid by the top 10% of earners.

The more that leave the U.K. because of high taxation the more we'll have to pay to try and make up for the shortfall.

In the main these people worker harder and longer hours than most of us with a 12-hour day being 'an early night'; usually 6-days a week, often Sundays too.

Get some blue or hazel contact lens to cover those of the Green-eyed monster!

And ........ be careful what you wish for!!!
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As MaizieD pointed out, you are conflating high earner tax payers with high wealth individuals paying very little. A top footballer will make, say, £50m a year in salary and sponsorship, and pay a fair amount of tax on it, becoming one of the highest tax contributors. On the other hand, some individuals/companies make billions but manage to pay comparatively little tax. They find loopholes in legislation and creative ways to handle their accounts. Their wealth keeps growing, their tax bill... - not so much.

M0nica

Why is there this assumption that wealthy people live on dividends? many extremely wealthy people are earning £multi million salaries. Look at the salaries of Boards of directors of international and top national companies. On these they are paying income tax. Remember the top 10% of taxpayerspay around 60% of all income tax.

Stop avoiding figures that do not agree with what your want to believe.

I have read Thomas Pikety's book. Capital in the 21st Century. Very long, very intensively researched. It's all about Wealth and inequality.

Try it...

I have. Just because he wrote it, I do not have to accept it. I can think of several books that were very influential in their time and were proved to be totally wrong.

MaizieD

Aveline

Nevertheless, a lot of wealthy people do leave the country.

But they can't take their fixed assets (land and property) with them. Nor can they take their children's schools or their friendship groups...

I think it would be good to adopt the US system of taxing a US citizen's income regardless of what country in the world they live in or earn it. It would disadvantage the wealthy people moving to lower tax jurisdiction, of course...

Seems income, taxed regardless of where earned might raise more in taxes. What are negatives to this approach to income tax?

M0nica

I have. Just because he wrote it, I do not have to accept it. I can think of several books that were very influential in their time and were proved to be totally wrong.

I'd agree with you if he were an economic theorist. But I respect thorough pure research.

I think the average person is very much in favour of a wealth tax 🤷‍♀️

Whatever threshold is set for a wealth tax ( which I broadly support) I have no doubt that the threshold will creep down over time to catch more and more people. Governments are like that.

If we can't decide what counts as actual 'wealth' how can we know what the 'average' person is?!

Aveline

If we can't decide what counts as actual 'wealth' how can we know what the 'average' person is?!

I think we can’t do much about deciding an ‘average’ until everyone is subjected to the same tax regime.

MaizieD

M0nica

I have. Just because he wrote it, I do not have to accept it. I can think of several books that were very influential in their time and were proved to be totally wrong.

I'd agree with you if he were an economic theorist. But I respect thorough pure research.

That still does not mean it is correct and he has many influential critics.

eazybee

No.
Cut the Welfare Bill.

How very unkind

I loved his analogy, and a simple yes from me.

Yes we need a focus on some sort of wealth tax.

The gap between the richest in society and the poorest has grown exponentially. We can not allow that direction of travel to continue so sone recalibration is needed.

I'm still not sure that some sort of extra tax on those who are already contributing an out of proportion amount of tax will work. We need something more sophisticated.
Stimulating the economy to produce more, well paid jobs, would be a good start but easier said than done. However, increasing NI on jobs has had an obvious deleterious effect. Increasing tax on trading and on savings won't work either.

Fallingstar

Yes.
The very rich pay very little in comparison with what they have and the likes of most of us pay a lot compared with what we have.
Unfair.

Exactly this !

A wealth tax says what it is a tax of the very wealthy, millionaires who should be paying more into the system, which would bring in billions to help pay for our public services. It's exactly what this country needs and should be doing.
Other countries tax very wealthy much higher than UK. It's not true that they would leave if countries tax them as they should be taxed, no problem.

Some millionaires are calling on government to tax their wealth.

Tax the very wealthy.

This seems a good role model

Norway imposes an annual net wealth tax on the worldwide assets of its tax residents.For the 2026 tax year, the tax is levied at a combined rate of 1.0% on net wealth exceeding NOK 1.9 million (approximately $178,000 USD):0.65% goes to the state0.35% goes to the municipalityNet wealth is calculated by deducting your total debt from the total market value of your assets (e.g., bank accounts, properties, vehicles, and shares). While assets are assessed at their true market value, several categories enjoy significant discounts, such as a 75% discount on the assessed value of primary residences

Google

It appears that Norway has no problem with the very wealthy leaving the country.

That does sound a good model on the whole, but giving some of the take to the municipality (assuming that equates roughly to Local Authorities here?) means that the ones that are already wealthy will get even more money and inequality will get worse.

Well Norway is one of the most equitable societies, in the western world so it seems to manage that perfectly well.

As far as I’m concerned that is what I want.

A much more equitable society. This brings less division, a healthier population who are cared for.

Whitewavemark2

Well Norway is one of the most equitable societies, in the western world so it seems to manage that perfectly well.

Yes, I know - I was just making the point that an area with lots of billionaires will get a lot more in taxes than one with lots of people on benefits, and asking how that works to create a more equal society (which is something I would like to see, too).

If Norway is such a paragon why are people not flocking there?

Aveline

If Norway is such a paragon why are people not flocking there?

Have you seen the weather!

Seriously Norway does have people applying to reside, but has rules the same as every other country.

I recently spent time to talking to a Norwegian immigrant. He had emigrated to Norway from America. The contrast between the two countries could hardly be greater for ordinary folk. He now has a family and listed the huge benefits for his family living in Norway compared to the USA. He was able to emigrate to Norway because he met and married a Norwegian woman.

Let's not get too enthusiastic about a Norway model for Wealth Tax it it very controversial and there has been a large exodus of wealthy individuals.

All global assets are included including private residences with discounts of various levels for different assets, if you are retired and retain a large residence you will be paying a significant tax.

In the case of Norway a wealth tax is entirely ideological, aimed at more equal society, they have no need to raise more tax the economy produces a large surplus which is retained for long term investment.

The UK is entiredly different, we have a weak economy and need to encourage enterprise, so wealth leaving the UK is very unhelpful. Im not expecting a wealth before the next GE, then if Labour do get a majority there may well be one.