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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

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

589 replies

LuluJakey1 · 06/07/2020 23:10

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.

OP posts:
Disquieted1 · 06/07/2020 23:40

They're not going to pay for all this stuff with a penny or two on income tax, that's for sure. A windfall tax of some sort may be inevitable.
Also I'd have the capital gains on buy-to-lets very firmly in my sights.

KaitK · 06/07/2020 23:43

@Disquieted1 ha ha, looking at it like that, I might just support this idea. I could make a fortune!

Oliversmumsarmy · 06/07/2020 23:43

Hasn’t Polly Toynbee been advocating this for years.

Same shit just different situation

doolallyboo · 06/07/2020 23:43

I would look at higher duties for additional properties particularly when bought by buyers overseas. Higher CGT, potentially luxury items VAT.

LolaSkoda · 06/07/2020 23:43

I would happily pay extra in income tax/NI contributions to help pay for a better future etc. They’re welcome to tax the interest on my savings a bit more if they want... the interest rate is shocking so good luck to them!

I would also like to see a more appropriate council tax scheme for properties with only one adult in. If wishes are being granted I would like to see single person discount amended to 50 percent!

WeBuiltThisBuffetOnSausageRoll · 06/07/2020 23:45

Obviously, it's a ridiculous idea but to people saying about 10% of the value of everybody's houses, surely that would only apply if you owned it mortgage-free? If you have a house worth £300K, but you owe £250K on a mortgage secured against it, who in their right mind could say that you have £300K of 'wealth'?

The only way it could possibly be approaching fair would be to levy it on people with (e.g.) over £1m of wealth - you know, the people who already have fancy accountants who are highly skilled at off-shoring their clients' wealth....

Raella50 · 06/07/2020 23:45

Sorry but why is it that salaries are ok to be taxed extra to pay for this mess but personal wealth is not? So pensioners in massive homes don’t pay a penny towards the bill but young families juggling mortgages and childcare on a wage should be footing more of the bill? What about the mega wealthy who just inherit and inherit? Yes I know these things have already been taxed to the hilt but we’re talking about exceptional times an taxing people above the norm. We all have to contribute.

NotAnotherUserNumber · 06/07/2020 23:45

This would surely be impossible? Most people don’t have 10% of the value of their home and pensions available to pay in tax.

PomBearsyummy · 06/07/2020 23:47

"The only way it could possibly be approaching fair would be to levy it on people with (e.g.) over £1m of wealth - you know, the people who already have fancy accountants who are highly skilled at off-shoring their clients' wealth...."

How does that make it "fair"? Granted they could probably afford it. But it doesnt make it fair.

Raella50 · 06/07/2020 23:47

@NotAnotherUserNumber There must be a way for them to release it from pensions. As for houses, they could force banks to extend mortgages.

BlackKite · 06/07/2020 23:49

YABU for not reading the article

tallrachel · 06/07/2020 23:49

Here is a crazy idea. Stop fucking bailing everything out.

WeBuiltThisBuffetOnSausageRoll · 06/07/2020 23:50

Effectively, this is what will happen anyway by means of inflation. By borrowing billions more pounds into the economy, everybody's wealth will end up worth far less per pound - it's just a much more subtle way of doing the exact same thing.

doolallyboo · 06/07/2020 23:50

Sorry but why is it that salaries are ok to be taxed extra to pay for this mess but personal wealth is not?

Id like to know this too? Particularly as we have an ageing population & so much generational inequality.

BreconBeBuggered · 06/07/2020 23:52

Lordy. I don't think the value of my house has increased by much more than 10% in the 13 years I've been paying off the mortgage on it. I don't really like the idea of houses as investments, but that's ridiculous.

PomBearsyummy · 06/07/2020 23:53

"Sorry but why is it that salaries are ok to be taxed extra to pay for this mess but personal wealth is not?"

Erm, you know the retired folk have previously worked and paid tax right?

Keepdistance · 06/07/2020 23:53

It would be very unfair. And tbh would make we buy a more expensive house with a mortgage. They cant expect you to be able to increase your mortgage.
Or give dc the money.
Savers are and have been screwed by the economy. Need a pension (hardly have one) and otherwise would be working till i drop.

Is this to force more people into care homes???

Tax the earning. And property sales. Yes to expensive cars.
Why should people pay who own the house they already are paying to buy it. Many have no equity.

Anyway it's clear we need to pay more tax or spend it better as our schools and hospitals are much wore than the rest of europe.

Also BJ bears a lot of the responsibility for this. If we had locked down earlier it would have been safe to open sooner.

Maybe request a donation of say £100 per vax?

Anyway they will have saved a lot of pensions. (Care/care home costs etc)
Raise tax on luxury food maybe?

Or is this to make people worried so they'll just spend it...

NotAnotherUserNumber · 06/07/2020 23:55

@Raella50 but forcing banks to extend mortgages would cause other economic problems. Mortgage lending is restricted for a reason. Not to mention the increase in repossessions this would cause when interest rates eventually increase significantly. Releasing equity from pensions is also a bad idea given the looming pensions and social care crisis.

MiddlesexGirl · 06/07/2020 23:56

why is it that salaries are ok to be taxed extra to pay for this mess but personal wealth is not?

Because for most people their personal wealth has been gained from their salary or business profits and therefore already taxed once.

Of the ideas on this thread I'd support a luxury tax and I'd support a rise in general taxation. I don't think a wealth tax would be as easy to implement as Polly thinks.

WeBuiltThisBuffetOnSausageRoll · 06/07/2020 23:59

How does that make it "fair"? Granted they could probably afford it. But it doesnt make it fair.

You're right - it's still not actually fair. Plus it makes no distinction between those who've worked and sweated and taken huge personal risks to make that money, whilst paying every penny of tax due along the way, and those who've been born into it or got extremely lucky and then offshored it straightaway.

One thing that boggles me is that you can work hard scrubbing toilets for £15K a year and have to pay tax on that, but if you buy a Euromillions ticket on a rollover and happen to strike very lucky, you could have £150m drop straight into your lap and not have to pay a single penny of tax on it. I know the idea is that tax has already been paid by every participant as part of their stake/ticket, but even so, I can't imagine many people winning multiple millions being too distraught to be told that 10, 20 or 30% of it was immediately due in tax, leaving them 'only' with all the rest.

Raella50 · 07/07/2020 00:00

Yes I’m aware it’s been bought with taxed income but we’re faced with raising the taxation rates well above the rate that money was taxed at because we’re not on normal times! The burden should be shared by all. So many wealthy pensioners in expensive homes looking to raise taxes on salaries cash-strapped families with big mortgages. Sick of it.

QuestionableMouse · 07/07/2020 00:01

I'd be absolutely stuffed as I inherited my house and I'm otherwise pretty poor 😂😂.

No way I could come up with 10%!

WeBuiltThisBuffetOnSausageRoll · 07/07/2020 00:02

why is it that salaries are ok to be taxed extra to pay for this mess but personal wealth is not?

Because for most people their personal wealth has been gained from their salary or business profits and therefore already taxed once.

True, but even in cases where that isn't what happened, it's still much easier for the taxman to grab his share before the person has already had chance to spend/enjoy the money.

Shinesweetfreedom · 07/07/2020 00:02

@Jaxhog
Not if they bring in more taxation for landlords.

moolaalaa · 07/07/2020 00:03

Part of the problem is that our whole socety is now built on debt rather than productivity. As such we have people that cannot survive even a couple of months without a wage. Sorry, but we need to let the deck of cards come crashing down and people need to lose their egos and live within their means.

Instagram influencers can fuck off too and get a useful job. They are partly to blame for this debt culture.