How should covid be paid for?

[KenDodd]

I think there should be a small wealth tax (up to 1%) and before anyone starts saying I'm just jealous or whatever, I would be in for thousands of pounds that I don't have and would have to owe. I feel really strongly that we can't just load yet more debt onto the young, they have it much worse than my generation did already (I'm 51).

Yabu - No to wealth tax
Yanbu - Yes to wealth tax

If you vote No, please suggest an alternative that you think would be fairer.

It's another "nice idea in theory but impossible in practice".

How about you explain the practicalities of how it would work and who would police/check it.

What about those with assets on paper but nothing in the bank? What about, say, a GP with a "pension pot" worth a million but who doesn't have £10k in the bank? How would you verify and value antiques, businesses, vintage cars, foreign properties, etc? What about people with money in offshore bank accounts?

The ones you aim to target (i.e. the billionaires) will be the ones who have assets "hidden" in unregistered assets, foreign tax havens, etc.

95% of the population would not be affected
To me this means it is not right. Why shouldn't we all contribute?

Do away with capital gains tax, and add all profits received into income
That is a really good one. Also removing the triple lock on pensions.

@MintyMabel

When we are asking how to pay for supporting people, keeping them fed and out of poverty, during an unprecedented global pandemic, whilst it is still going on and people are dying - then we know our priorities are completely out of whack and we need to have a good word with ourselves.

Did you ask the same question about the Gulf War?

Personally yes . And Afghanistan. And Iraq.

In fact the War on Terror and the War on Covid seem remarkably similar (supported by both main parties, eye-wateringly expensive, civil liberties pissed up the wall, people at virtually zero risk still full of anxiety, policy entirely driven by the desire of Karen-from-Nuneaton to feel 'safe', anything resembling actual victory almost certainly unattainable)

Amazon, Starbucks and all the other big corp tax dodgers

This.....this lazy government should start chasing all their tory mates who dodge the tax system (legally ) rather than a lazy tax on those already paying their share

and add all profits received into income

I also think this is how inheritance tax should be treated. Do away with inheritance tax, just treat the proceeds as income for the recipient.

I know everyone will hate me for this

But the Chinese government should pay

Article (one of many which could be cited) on UK age / voting patterns. Basically the older you are, the more likely you are to vote Tory. Statistics are a more useful guide than anecdotes.

yougov.co.uk/topics/politics/articles-reports/2019/12/17/how-britain-voted-2019-general-election

What counts as a debt? An outstanding mortgage balance? A student loan? I think YABU because it would cause significant financial difficulties for most average homeowners to be expected to stump up 1% of the value of their home - especially considering that they will have already paid stamp duty.

You deduct and loans and only pay a percentage on what you would have left if you liquidated all your assets. Also, I think you should be able to claim a refund if, for example, house prices fell in the next three years.

... And this disgusting idea pops up again. Hit the elderly and vulnerable after they have suffered this, but not younger people, because apparently "they've suffered enough" (??) COVID affects the former groups disproportionately, but no, hit them again.

@SomewhereEast

I agree. I'm your absolutely 'on paper' Tory and would never vote for them. Or well, they'd have to have a complete personality and policy change for me to vote for them. Also, I would personally be hit very hard by the policies I'm suggesting and would have to take out loans or have some other way to pay. I also think this would be fairest to society as a whole.

As for Amazon/Starbucks etc. I think all nations should get together and impose a wealth tax on them (or even just any tax). No escape, they can't just more money to another jurisdiction. This would need international cooperation unfortunately so I'm not optimistic because of our 'race to the bottom' world.

I hate that we always expect those that work to fix everyone's problems.

Everyone should be taxed, tax on purchases should go up, people should be taxed on benefits, tax on cigarettes and alcohol should go up. Everyone who "cant" find a job can volunteer as a part of their benefits, work in harvests to reduce the cost of our fruit and veg, clean up the streets and parks etc.

How are you even going to add up the cost of everyones assets? send a valuation officer to every house, vehicle, office, yard in the country?
What about the bloke with a collection of vintage watches? Or someone that owns every game station and has a massive tv in every room?

I dont earn alot of money, we bring home 30k between us, but I dont resent high earners for a second, but I damn well do resent low earners who think the reason they dont earn alot is because someone else does and that makes them entitled to some of their money, and especially people who wont work but complain they dont get enough money handed to them.

@TheClaws

Why is it discussing to tax those who have the most?

What would your alternative be?

Also, I think you should be able to claim a refund if, for example, house prices fell in the next three years

as it's likely that house prices will fall with the effects of Brexit and Covid, we could end up in a situation where the government end up paying out more than they receive, which would also be concentrated in the hands of people with the most expensive houses. I don't think this is what you are after.

@SomewhereEast - that only works if people don't game the system.

I don’t necessarily believe in taxing assets. Yes at the very top end it makes sense, but if you have two couples on the average salary, one who has scrimped and saved to buy a modest house with a mortgage which they are willing to later sell to pay for their care in later life vs the other who are renting and spending the rest on takeaways and holidays abroad, then expecting the gov to pick up the tab in their elderly years, arguably the one doing right by the government long term would be the one getting wealth taxed. (The examples are designed to be a bit at each extreme, and no reflection of any particular individual, nor saying either is right or wrong for that person at that time, and assumes the same household income for both). It would be fairer to tax income or spending. Increase tax on petrol/diesel as that taxes the heavy users more, same with non-essential food (cakes, ice cream etc as well as the usual baddies of fags and booze) just keeping the basics as they are now. I’ve no idea if that would be a boost but it seems fairer than taxing average peoples family homes.

@SomewhereEast

This will go down like a lead balloon with some people here, but I think the burden should rest more with the affluent section of the demography we're actually protecting from Covid, especially as that demography has already lucked out in many ways (final salary pensions, houses which have multiplied many times in value since they bought them). I'm glad Rishi Sunak is being really blunt about the need to pay for this, rather than just borrowing & borrowing (which is effectively dumping the burden on the young). Of course the problem is that middle class over-50s are the Tories' core demography, so I'll bet they'll screw the young instead.

You’re assuming all wealthy people are older. No idea why because that quite clearly is erroneous.

but I damn well do resent low earners who think the reason they dont earn alot is because someone else does and that makes them entitled to some of their money, and especially people who wont work but complain they dont get enough money handed to them.

Do you resent care workers who worked through this crisis, at great risk to themselves, but earn so little?

The problem with VAT or free bus passes etc is that it's just tinkering around the edges, it wouldn't raise enough.

The Chinese should pay. Their deceit and cover-ups led to the pandemic spreading so rapidly and on the balance of probability their carelessness allowed it to escape from the lab in the first place. It would not be enough for a criminal conviction, but more than enough for a civil one.

Also, those taxes might cut consumption which then creates it's own problems. A wealth tax wouldn't cut consumption or mean there was less money floating around the economy.

It's going to have to be a lot of things.

A one off wealth tax (hits older people most)
AND
Ongoing higher taxation (hits younger people most ongoing)
AND
Continuing to close loopholes in company tax (really not as easy as it sounds due to the global nature of business)

Lower income tax allowance, 1p in the £ for everyone over new lowered threshold.

@cultkid

I know everyone will hate me for this

But the Chinese government should pay

If I'm in a minor car accident, the other drivers fault, they clipped my wing mirror and broke it.

Then 3 months later, I drive my car into a wall.

The other driver should be liable for the cost of the wing mirror, not the entire car.

I think if the Chinese were developing germ warfare they would be looking at something significantly more dangerous than Covid