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.

And I’ll bet you don’t pay you cleaner the same rate as a board member or an executive, although I doubt you will admit it

Of course I admit it. What a completely ridiculous thing to say. I pay her the going rate, which is actually more than she asked for.

I’ve never said everyone should be paid the same - I might be left leaning but I’m not a communist! I just don’t subscribe to the correlation between hard work and high salaries. There are a lot of people who work their arses off who are poorly paid.

I just don’t subscribe to the correlation between hard work and high salaries

I think perhaps we need to remove "hard work" and replace with "high skill set". I am aware that doesn't necessarily remove the difference, but it does make higher pay more "deserved" perhaps?

If at board level your responsibilities were less than a care worker then you weren't doing your job very well. At board level you are responsible for many people's livelihoods who are in your employ, for making sure your organisation is acting ethically, making sure that you aren't breaking any laws (or you end up in jail), making money for investors, ensuring that your customers are happy, managing the cash flow or your organisation etc. That is more responsibility than a care worker

So lives are worth less than a clean compliance audit ?

makes you wonder why paramedics waste time with defibrillators and oxygen. They really should be carrying a shedload of clipboards, biros and compliance forms. Will you suggest it to the NHS, or shall I ?

There are a lot of people who work their arses off who are poorly paid.

But it's not just physical hard work that matters. What about the years of study undertaken by those with qualifications leading to higher wages in later life? That's an investment in themselves which they rightly deserve to be rewarded, especially as they'll usually have had much lower income (if any) whilst studying compared with others who didn't bother with further/higher education. "Speculate to accumulate!"

How about bankers who are so shit that the crash the entire global economy? Yeah minimum wage for them I reckon.

Lol that will be why PhDs are so financially rewarding. Not.

What about the years of study undertaken by those with qualifications leading to higher wages in later life? That's an investment in themselves which they rightly deserve to be rewarded, especially as they'll usually have had much lower income (if any) whilst studying compared with others who didn't bother with further/higher education. "Speculate to accumulate!"

You mean like that fabulously well paid profession, nursing?

Good point, many nurses do 3 year course, then study while working for BSc, followed by MSc. Admittedly not many PhD’s. But many additional courses - prescribing, chemo, minor surgery, laser work ...

The thing about a board member being a position of responsibility is that is only the case where board members take responsibility.

The reality is that ‘performance related’ pay is nothing of the sort. The formulae used mean board members are very well paid almost irrespective of performance.

And when companies fail, no bonuses are ever paid back and nor does any meaningful opprobrium attach to the directors (short of criminal delinquency).

Normally they keep their multi million pound houses and within a year are deploying their ‘talent’ at another company.

Meanwhile if a nurse makes a small mistake, he/she is probably investigated and maybe sacked. She cannot just walk into another position.

Which job is really more responsible?

@larrygrylls I don't think that's true if I made a mistake at work I would get investigated

That's fine redeploy the wealth and put limits on what higher earners can earn - then all that talent will go elsewhere in the world and ... ummm who pays for the nurses?

I think footballers earn their money because they create wealth for the club - I don't think it's proportionate to other sports though but I couldn't care less. If they have that skill go for it and earn the money. I don't resent anyone earning what is the market price for their skills. I don't obsess about what other people have compared to me. I just try to do the best I can with what I've got

I don't think that's true if I made a mistake at work I would get investigated

You couldn’t make a mistake at work that killed someone, could you? You can’t get any greater responsibility than holding someone’s life in your hands.

The “talent” going elsewhere is such an old argument. Even if it was true in the past, it’s certainly not in the post Covid world.

Where,

In addition how do you classify a mistake and who would do the investigating? Would it be an internal investigation by, basically, your other friends on the board with, at worst, suggested 'retraining' or would it be a harsh external investigation by the IOD?

When the banks collapsed there seemed to be minimal investigation of what went on at board level and this was virtually criminal (and, in some cases, many feel it crossed this boundary). How many board members got disqualified by the institute of directors? How many are currently working in high level positions again?

Funny how the "market rate" for company directors just keeps going up and up out of all proportion to pay rises elsewhere isn't it? Almost as if the "market rate" were an arbitrary, self-serving number chosen by fat-cat remuneration committees with their fingers in the pie.

@alsohuman I think it's more likely in the covid world actually - we are getting to a point where we can work remotely and potentially we could be citizens of another country and still work 30 days a week in GB. It's perfectly true - if talented people can earn substantially more in France why would they stay in the U.K.
And yes I could be responsible for killing someone - not directly but through Falkirk if my team to follow health and safety checks. The idea of nursing though as far as I am aware is to not make mistakes that kill someone - if they are doing their job properly that won't happen. I have many friends who are nurses and as far as I know they haven't got close to killing someone. Additionally I know someone who died in hospital and no individual was held culpable despite the fact that they were admitted they were negligent