What do with think will be in Labour’s budget?

Would this be a good idea?

‘Two percent minimum tax on richest households could raise £10 billion
Introducing a two per cent minimum annual tax on households with more than £100 million in wealth could raise around £10 billion in 2026, while affecting fewer than 1,000 households in the UK, suggests a report by academics at King’s College London, the Paris School of Economics and the University of California, Berkeley.’p

‘The proposed reform would require ultra-high-net-worth households with more than £100m to pay a minimum effective tax rate equivalent to 2 per cent of their total wealth, with any income taxes already paid deducted from this liability. Households already paying the equivalent of 2 per cent of their wealth in tax would pay nothing extra.
Key findings of the report include:

• £10.4 billion could be raised in 2026 – 10 times the estimated savings from cutting the 2024/25 Winter Fuel Allowance. £10.4 billion would reduce the UK's projected current budget deficit by almost one-third.
• Fewer than 1,000 households would be subject to the tax, substantially limiting administrative costs, which are estimated at less than one per cent of revenues.
• Households with more than £100 million in wealth would remain within the scope of the tax for up to ten years after ceasing UK residence to limit migratory responses - building on the principle recently introduced for the UK inheritance tax.
• This proposal fills a gap which even reforming capital gains tax and inheritance tax cannot fix. This is because the wealth of the super-rich is held in assets that can be accumulated for decades and borrowed against without ever triggering a taxable event. This proposal tackles this directly by taxing wealth itself.
• Revenues would continue to grow over time, reaching almost £18 billion annually by 2036.
• Nearly half of all revenues would come from fortunes primarily built in finance, real estate and land.

"Wealth taxes have too often been dismissed as politically attractive but practically impossible. This report shows that a well-designed minimum tax on the very wealthiest households is a realistic, targeted reform that would make the UK's tax system fairer while raising substantial revenues."

https://www.kcl.ac.uk/news/2-minimum-tax-on-richest-households-could-raise-10-billion-a-year

I just hope he doesn't tax businesses more because if he does they just pass it on to customers so we all pay.

Inflation is going to add £5 billion to the benefits bill. Eek.

The only option is income tax rises. All the other ideas (eg holiday home tax) are going to raise peanuts. Pension raids or increased inheritance tax are one-time stunts as obviously people will not in future save if they fear their savings will be confiscated.

Yes it’s not a great term when discussing the behavioural impact of tax policy. And each tax can have a different impact anyway.

It reminds me of that it’s not a household budget line also used on here a fair bit. Which isn’t helpful when looking at debt.

What makes you think that the MP would be subjected to "racism" ?
The fact that the government is pricing young people out of the housing market is a valid concern that isn't racist.

Part of the problem with this whole discussion is words "Trickle-Down Economics".
Many people assume that this has something to do with Economics. It does not! The idea was invented in the 19th century as a criticism to some of the policies back then. Apparently the exact phrase "Trickle Down" was used by Will Rogers to criticize Herbert Hoover. It was then later brought back by people criticising Ronald Reagan.
The term is the creation of the critics, not the advocates, of tax cuts. That's one reason why it doesn't make a great deal of sense.
It's very important to understand that the impact of changes to corporate taxes are very different to the impact of changes to individual taxes.

You believe whatever you want to believe dear.

I don't think I said trickledown was bad. I am looking for an example of where it works. Because my understanding is it has never delivered what it is claimed it will.

And I think that is important when so many people are advocating for it. We never even got to the discussion of how it will work.

So when people use their earned money then it’s bad trickledown, but when the state takes that money away and trickles it down to welfare recipients then is fair distribution?

In other words you have no data to prove that your version of trickledown works.

And when that is combined with what I said earlier, that it is a Labour manifesto target to make wealth distribution more fair, I think it is unlikely they would go your route.

Given that the policy you want to see is the same as the policy reform propose, it sparked an interest. Because I have yet to see a Reform fan explain exactly how it works. And they normally revert to the " you are naive" reply too, when they can't explain it.

I am seeking this country, or countries, that do this Reform version of trickledown and is a land of milk and honey because of it. I would like to know if it works.

I think everyone reading your posts fully understands you've never run a business, so are very unlikely to have the necessary experience to be able to ascertain what is good or bad policy for business.

So I can't be bothered playing pigeon chess with you any more. But please do come back for a debate once you've attempted to set up a business that employs people and have some experience in these matters. I have a feeling your rather naive opinions will then be quite different. Adios for now.

@Badbadbunny

Personally, I feel the way they (especially Sunak) handled covid (especially 3 million self employed/small businesses excluded from support) was the main reason why the Tories lost the GE.

I would say it was a contributing factor.

I was travelling in and out of the Netherlands weekly on the airlines and it was never an issue. I was tested for COVID three times per week:

Rapid test Monday morning before boarding the plane
Full test on Thursday to allow me to board the plane on Friday
Another full test on Saturday in the UK.

It might sound hugely inconvenient, but it was not. Airports had test facilities and the site I worked on had test facilities.

As long as people wore masks and used the anti-bacterial hand wash, there was nothing to fear on the Airlines and that's people packed in tight in a confined space.

Personally, I feel the way they (especially Sunak) handled covid (especially 3 million self employed/small businesses excluded from support) was the main reason why the Tories lost the GE.

One of the reasons I voted Labour in 2024 was due to the Conservatives handling (actually mishandling) of COVID. Many business were uncessarily forced to close and never re-opened.

I was in the Netherlands during COVID. They allowed hotels and bars to remain open. Hotel guests had food taken to their room.

Tables of four in bars were more spaced and had heavy duty transparent PVC installed. This enabled people to see and talk to each, but if they sneezed the PVC prevented others from inhaling any droplets.

However, as for Labour's upcoming budget, I would say some form of tax rise is unavoidable. Implementation of change will always have costs.

I am not demanding anything. I replied you your post, because it looked to me like you were advocating for trickledown. And I still think you were/ are.

So the next stage logically, is to look at a country that is closest to your policy, and we can look at the data to see if said policy delivers what you say it will.

My personal circumstances have nothing to do with it. That is into play the player and not the ball territory. And data is easy to look up. One does not need to be an expert on Denmark to find data on Denmark.

Maybe you tell me if you are an expert of individual countries data.

You demand I answer your questions, but you won't answer mine? A simple YES or NO would suffice.

So guessing you haven't then?

Yes hitting the limit on debt isn’t all that, even if people keep voting for it.

What has that got to do with anything. I am asking if you can name ad EU country where you work that follows the doctrine you propose.

Because as I just said to another poster, then we can look up the data.

Have you ever run a business?

Are you answering the question I asked @Amythomas ?

Anyway. So if you are saying none of the EU countries are doing what the UK need to do, can you name a country anywhere that does what you think the UK should ?

Because then we can look up the data to see if it works.

None of the things we need to do, and it's probably too late now anyway.

Look across the channel if you want to know where we will be in a couple of years.

What you describe, is it or is it not trickle down? It looks awfully like it.

So, as you work all over Europe, what country do you think has the closest to the ideal conditions you describe ?

Yeah, under his watch most of the small businesses had to close during Covid. While many of the big names (Tesco, etc) were allowed to stay open. Online big business thrived like never before resulting in the closure of thousands of small high street shops in the UK.

Again, nail on the head. Unfortunately the Tories were just as bad with their "anti small business" attitude, especially Rishi Sunak who only cared about big business and the super rich. He didn't give a stuff about small shops, sole traders, self employed, etc - despite small businesses employing more people than big business!

Yes I think so. Hence Pat McFadden’s line. It’d be similar in their meetings.