If a wealth tax brought in zero revenue to the government, would people still support it? If yes, why?

[percypiggy200]

I’m curious and I’d love to know people’s reasoning.

I can’t see much point if the revenue was zero , why would it be zero? however maybe some will be happy that the gov is trying.

Pretty obvious if a policy doesn't work/counter productive, then you'd scrap it, they all cost to run.

Personally, considering the state of the country, the demands on spending especially Defence, a Wealth tax on assets, say over £10m should be explored, not just instantly ruled out.

First thing i'd do is a revised Council tax on properties over say 3m, with exceptions for the pensioner who has lived in her Belgravia house for 70 years.

Oh don’t be daft op

where would the money go?

Are you the Dubai SAHM who’s husband works insane hours?

No

People would still support it because they don’t understand tax or economics. It is literally what is currently going on - it allows blame to be shifted and easy solutions to all evils to be proposed

You're curious, really?

It sounds more like you want to prompt a discussion about how all the peasants would agree to any anti-wealth policy and that they'd be too thick to realise it wasn't productive tbh.

I’m sure it would raise some money but I’m asking as a hypothetical. I’m wondering if some people think that a wealth tax is a good in itself regardless of the money it raises.

Can you explain HOW it oukd raise no money? If omon makes a million a year and net pays 20% tax on it that's still 200k right? So how would imposing tax lead to no revenue?

I'd want to know whose analysis suggested nothing would be raised before judging anything.

Yes that’s me - hi! 👋🏻 I love London and I would love to go back. I don’t have any ulterior motive I’m just genuinely curious!

Well- people supported VAT on education on MN when all the independent predictions were that it would result in a net loss for the treasury- predications which are busily being proven. So I expect alot of people support the idea that they don't care if money overall is less for society as long as other people don't have more than what they have.

Wealth taxes tried in other countries have often ended up being scrapped, partly becuase they are expensive to administer and drive high-wealth people to leave, or at least move their money.

The UK is especially reliant on high-income people for its tax base (more than virtually any other rich country). It doesn’t take too many tech firms, hedge funds, inventors, etc leaving, or to deciding not to found here, before you’ve lost more in other areas of the budget (like income tax) than you’ve gained in the wealth tax.

Property value tax is a partial exception here.

Your ulterior motive seems to be you'd like your husband to continue to pay little to no tax?

I’m wondering if some people think that a wealth tax is a good in itself regardless of the money it raises.

We do have too much burden on income for higher earners on PAYE. And huge wealth disparity between generations due to housing costs. Plus we need to increase tax take somehow.

Yeah apart from it has bought in more than ever expected and there hasn't been the rush to the state sector, full amounts wont be known exactly until next year though.

The wealth in this country is massive.

Many would want to keep it anyway.
We love to punish the rich.
This country seems to be full of jealous people who don't like anyone having something they don't no matter how they achieved it.
And full of people getting out of paying there way.

I think @percypiggy200 means tax on wealth rather than income, but it would be helpful if she had expanded a little in her OP with some examples.

I also think @MinervaMouseHunter has pretty much nailed it.

A wealth tax by its very nature is not done via PAYE.

I came here to say this. VAT on school fees is likely to cost the government money overall but who cares eh, as long as those nasty private schools get closed and their grounds concreted over

I’m not saying nothing would be raised - I think some would be raised but much less than people think because rich people would just move, work less etc change their behavior.

what I’m trying to ask is do people think a wealth tax is a good idea regardless of the money raised? I.e. is a wealth tax a good in itself?

The way to fix this is to make housing much cheaper (build more!), and energy, and rebalance pension policy.

We do have a very high share of our tax burden on high-income people. But there’s a big overlap between those and high-wealth people so a wealth tax isn’t going to help in that regard.