Is a wealth tax the only way?

[Cuppasoupmonster]

…of raising capital for proper public service reform and not just sticking plaster ‘solutions’. Just interested to hear others thoughts.

YANBU = yes it is
YABU = no it isn’t

Depends what you mean by a wealth tax.

Rarely is one thing "the only way". You could have phrased your question better.

‘A wealth tax (also called a capital tax or equity tax) is a tax on an entity's holdings of assets. This includes the total value of personal assets, including cash, bank deposits, real estate, assets in insurance and pension plans, ownership of unincorporated businesses, financial securities, and personal trusts’

This, in short.

Depends what you mean by wealth.

Well, what else would raise the enormous amount needed for full reform of the NHS, transport and education?

No.

how do you see this operating in practice op?

it just means only the very wealthy get to hold assets

Oh it's you. And the main targets of this would be....? let me guess.

There is already a wealth tax. Do keep up.

And there is already tax on a lot of those tbh gas - you’re aware of capital gains tax yes?

Rich people? Who else should be the target?

Any particular demographic? and how rich?

Of course it isn’t. We could start with taxing multi billion dollars corporations first.

We could also invest in our economy and make investors and high tax earners want to live/work here.

No, just anybody who has a certain amount of assets. As for how rich, I’m sure there are think tanks that could advise should it be implemented.

How do we invest without the money?

Who do you class as rich people?

I think some companies making unconscionable profits (like energy companies) should be taxed further to prevent the current spiralling cost / profit cycle when the material costs are low.

I don't think higher individual earners need to be taxed more (maybe biased in our household!) we already pay ££££ in tax. It'll drive high earners (who pay the majority of income tax) away.

To me it seems we need a one-off, enormous amount of cash. I can’t see a way of this being raised through any other means.

Certain amounts? why not just say what you regard as rich and that should be subject to a wealth tax.

On the contrary in this instance. Even if the next government did nothing else, lives would be improved dramatically. The existence of the super rich (note, not merely 'the rich') drives inequality and degrades life for everyone else.

This would be a fast way to put people off saving, contributing to pensions, investing in property or business, for a very long time. We will end up with an attitude of “might as well spend everything I’ve got as the government might take it any minute”.

I do think there are certain areas of wealth (property in particular) which are under taxed and we could look at those. But it would have to be introduced over the long term so not really a solution to current problems.

It'd drive the rich away, I imagine.

Probably more sensible just to increase taxes of those of us who have less choice. We are both higher rate tax payers and if I'm honest we could comfortably afford to pay quite a bit more tax. Obviously I'd rather the super rich got taxed, but I think it's naive to think it's that easy, especially as Britain is perhaps not as attractive a place to do business as it once was.

one off enormous input of cash ?
and how much of that will end up in the pockets of shareholders of private companies?

So penalise people who have worked hard enough, saved hard enough etc. to hold assets and funds. And let people who routinely blow all their money off the hook?

Why should a person on £50K who saves and lives economically have a greater tax liability than someone who might be on twice that but spends all their money on renting luxury property or leasing cars, holidays, fashion etc.?

It's a deeply flawed idea as it incentivises people to spend all of their money rather than save it.

It would also massively hit anything anyone inherits (beyond inheritance tax), which again, is penalising people who aren't necessarily that wealthy.

This perhaps:

www.wealthandpolicy.com/wp/WealthTaxFinalReport_FAQ.pdf

@Songlyrics many extremely wealthy people are where they are through inheritance, family wealth or unearned gains.

I honestly can’t see the rich signing up for it, I’m afraid.