What do you think of this idea of a wealth tax?

[LuluJakey1]

This is from The Guardian this afternoon. It is the third article I have seen in the Press two days promoting this idea.

www.theguardian.com/commentisfree/2020/jul/06/arts-wealth-tax-rishi-sunak-nhs-public-services?CMP=Share_iOSApp_Other

Personally, I think it is bonkers. She seems to be suggesting that ALL wealth in this country - houses, savings, pensions, shares/paintings etc should be subjected to a one off tax of 10% to get us out of the financial mess.

DH and I would have to find about £80,000 cash! We'd have to sell the house?

Yes- Yes it is a good idea and you are BU to criticise it.
No- It is an awful idea and you are right to criticise it.

If the govt were looking to harvest 10% of my - and your - assets there would have to be a central database of everyone’s assets

No there wouldn't.

@PigletJohn

Like the Land Registry, you mean?

Aren't there huge gaps in the LR ? Lots of land is held in trust and never changes hands when (very rich) people die. So it never gets registered.

Private Eye have spent decades trying to compile a working registry.

It's one reason why we still don't who owns what. Until the owner turns up with a 600 year old document from the King.

I think income tax should be put up a bit.

I certainly don't think the poor / working class should be forced to pay for austerity again like they have been since the 2008 crash.

Regardless of what some on here like to believe, people died directly because of that austerity. People died.

Rich people won't die from their taxes being a little higher.

Regardless of what some on here like to believe, people died directly because of that austerity. People died.

But that was the whole point wasn't it ? I mean obviously you're less likely to get elected if you say it honestly. But it was going on since 2010 and people did nothing to change it over 3 elections so were obviously not unhappy with it.

Now the UK has clearly decided the economy trumps health, maybe we can be a bit more open about it. Let's stop funding all the unproductive members in society (they're only a drain anyway) and big up the young, the strong, the healthy.

I'm surprised no one has thought of it before, really.

(Possible ironic post alert).

Not keen, but only because we'd be badly affected: we paid off our mortgage earlier this year (after paying for 40 years), so we have 100% equity in our house; we will both retire shortly and get lump sums (long term planning and a lot of saving for that); plus DH stands to get an inheritance later in the year. So we'd be stuffed. I'd rather get to keep the money and decide myself how to spend it - don't worry, we WILL spend it, and that will help the economy, but in our own way.

at couldhave saying she's not keen because it would affect her a lot. I wish everybody was so honest. I'm not keen either because it would affect me. If I was poor then I'd be keen or so rich that I could make arrangements for my assets to be untouchable then I wouldn't mind either.

@ICouldHaveCheckedFirst

you say you would be badly affected, but that depends what was taxed, and what the rate was.

The amount of untaxed wealth in UK is stupendously huge, so a fraction of 1 percent would raise a vast amount.

@DGRossetti yes there would. Otherwise how would it be managed? I am not saying it would be a public database but it would have to exist. Otherwise I might just forget about an account or one if my DC’s accounts. Whoops!

HMRC seems to know about all my accounts even without me telling them.

Banks and fund managers seem to ask for NI number when you take out an ISA or a pension (possibly other accounts as well).

Just don't bother saving in a bank. Interest rates are pathetic anyway so you may ask well keep it 'under the mattress'. Anyway, it's a moot point, I have no savings to keep anywhere!

I work in care and my husband is a part time teacher. We earn around 20k each doing our standard hours and we get by ok.

During Covid my employer has offered time and a half for overtime. I am only a 20% tax payer in theory but when I've done a few shifts of overtime I lose 50% of what my employer is paying for overtime to tax, national insurance, pension and student loan. I have stepped up to help out and a few extra quid has been nice for a short while but I don't really find the amount of money worth the extra time away from my family. If tax or NI is increased I'll get less than half of what I earn and I already don't think overtime is worth it. I'm looking forward to my shielding colleagues being back and working my normal hours again.

Our house was bought in 2007 and isn't worth much more than then and will probably be worth less than 2007 soon. I think any wealth tax should be on the capital gain rather than total value.

I agree if you put capital gain on all house sales people will sit tight which is the opposite of what the stamp duty holiday was designed for. There could be a capital gain tax on property in probate?

We have some money in the bank but only because I took a maaasive loan as I was worried about the economic outlook and us having no flexibility at all. This loan will already cost us 5k in interest over the term so I hope any wealth in the bank that is taxed is balanced against debt to find net wealth.

It is a very bad idea. I have a house (but nothing else really and will happily work until I die). Lots of people would have to sell their house if they had to pay 10% of its value to the state.

I would prefer a much small state, lower taxes and much less state provision of just about everything.

It wont work because most wealth isnt liquid

My preferred idea is heavy inheritance tax. Every death estate should be heavily taxed (including offshore assets in trusts) before going to the beneficiary. The benefit is that the next generation earn their own keep, and this reduces the wealth divide, but does not take away entirely the capitalist incentive e.g. if you were an entrepreneur/inventor and struck it rich you get to spend it during your lifetime

Another vote for heavier inheritance tax here, before passing to beneficiaries as Everypony suggested above.

Regarding the inheritance tax idea, that will only work if probate is granted so the money can be released to pay the tax. DH is waiting for an inheritance and would only be able to pay tax if if was deducted from the estate.

I do have mixed feelings about it though. I've inherited from my Mum and I feel absolutely no guilt about that as it meant I could clear my mortgage. I've 'earned my keep' by working since I was 17 but live in an expensive area.

As the Duke of Westminster will tell you, Inheritance Tax is optional.

There is no reason to suppose that wealth will be taxed at 10%

The amount of untaxed wealth in the country is so huge that even 0.1% would bring in a vast amount.

I agree with a wealth tax but for estates worth say 2 mil and above as clearly someone with 200k in a house and 50k In a pension should be hit.

Taxing income means people working insane hours are losing a lot of their income whilst people who inherit (get free money) family wealth etc keep their wealth and don't have to do anything.

Terrible idea and makes Labour unelectable. Also people would hide e.g. paintings, gold etc and there'd be a black market.

Wealth taxes like this are fairly common place round the world, however,they inevitably lead to issues, most especially in relation to houses. The dry tax charge is Levied on people with no liquid funds to settle the tax. Might work better if primary residence is excluded.

@cosycatsocks

shock news.

The UK government is not Labour.

The chancellor who found Corbyn's money tree, and is throwing money around like a drunken sailor, is Rishi Sunak, who was given his position in the Tory cabinet by Cummings.

The chancellor who is looking for new taxes to replenish the public purse is Rishi Sunak. He is not Labour.

I'm surprised you didn't know that.

I think it would have to exempt your main residence and pension. After that, okay.

Maybe with a credit up to full value of main residence if you haven't paid the mortgage off.

Yea, of course gold bars etc. suddenly become attractive and some people have been seeing the way the wind is blowing for some time. There is a reason I buy paintings. I have to rotate them. DH hates it. He thinks it's a waste of money as I don't hang them all. He doesn't have a clue.

I think income taxes are not great if you suddenly manage to improve your income. I had this issue when I got some extra qualifications and suddenly found I couldn't get as much into my pension to make up for all the years when I couldn't afford to put anything in! A wealth tax is fairer in that sense, but there is no point in having it at too low a level with the potential for a dry tax charge.