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.

You’re one saying that not me. Scandi countries are usually seen as high tax. Our higher earners pay far more than their counterparts in even high tax countries. Did you miss the part of my post where I was talking about western economies? I don’t know if you know this or you’re confused but Dubai isn’t a western economy…

Why? You’re having a go at the op and it’s the wrong place entirely.

It’s oddly personal and bizarre to think you can shame people into not moving.

You really are better off voting for a party and policies which will make it attractive here rather than the opposite.

No idea how that quote ended up in my post!

You’ve not been following more recently. She’s clearly pivoting. She pretty much supported the Home Secretary’s proposals so I think she wants to move on from her parties focus only being on small boats.

She seems to be getting some discipline amongst the more mouthy parts of the party. I think she's started to transition them from being a one topic pressure group to a party which may actually have some policies.

I am not a Tory and voted Labour at the last election but I can sense a shift. If she can keep up the hard work of scraping them from the bottom into something sensible, had some decent policies to get our economy motoring, and Labour continued down this shitty path, I’d switch. I’m not tribal I just want this country to succeed.

No they don't what did you pluck that from

@Legolava I thought higher earners here were taxed in line with other European high tax countries?

Between 466k & 508k emigrated from the UK year ending 2023, year ending 2024 the estimate is 517k.

400k in 2019, 498k in 2022 (Covid affected in the years in between)

So the trend has been increasing for many years.

People of course do return, from late 2024, its approx 150k.

The educational professionals i know who have left, have done so because of the state of the UK's education system.

I think you’ve missed stuff. That’s not the case.

Nope. The FT did an article on it this week, the latest data. The difference in tax burden between the highest earners vs lower and middle earners is the highest in the UK, by a very long way now. We also take everything away from higher earners, where as many other economies have universal things such as childcare. Not much to stay for.

That’s why, no matter how much we tax higher earners, we still have rubbish services. Everyone else is not paying enough.

Yes they are because many will return, esp those who have buggered off to Dubai, you not want to retire there.

I doubt very much Oakshott will stay in Dubai.

Then they'll come back and moan about the state of the roads, lack of GP services etc etc.

Having not contributed to the UK for many years but still able to take.... just as my former neighbour did

Yep all over the place. It’s pretty simple make it attractive, or don’t as per Labour and see what people do.

This thread is about a wealth tax though not income tax.

Yet you keep responding to my posts whilst getting yourself in a geographical pickle.

Are we at the stage of denial now that we have no argument so we will just try and shut down any bad news about what is happening? How very 2024.

The % difference between rates isn't the overall tax burden, i'd have thought that was very obvious.

The reason people at the bottom aren't paying enough is because of the v low wage rises they got under the Cons & now also why so many claim in work benefits.

It’s a public forum. My view is that people who leave the UK to avoid paying tax are selfish. It’s an entirely valid view and I can express it here if I so wish.

Likely they’ll return one day and expect reasonable public services, that others have paid for.

@Legolava I already know we tax higher earners in line with other high tax countries & it’s the lower & middle earners who pay less comparatively. I said that upthread.

But the post I replied to said the UK taxes higher earners more than other countries, this is the bit I’m interested in? I can’t see anything that says that

It is obvious. So why would higher earners stay.? Excuses or not, the redistribution curve is the highest in this country out of all western economies. If you look at marginal rates, cliff edges and removal of benefits then higher earners also pay much more here too! What a win.

No, I wouldn't, because obviously the point of tax is to raise revenue.

But I think the premise of your question is flawed, and because I don't believe that we would see the mass exodus on the kind of scale that you're anticipating.

Some very wealthy people are undoubtedly greedy and bitter enough to uproot their families and move overseas simply in order to avoid having to dodge a bit of extra tax. I don't believe that the majority of wealthy people are that selfish though.

It’s pointless and odd. It’s not NK.

I have Danish family and you are categorically misunderstood the tax system and the perceived injustices are showing up your ignorance!

The thread is asking about whether a wealth tax should be introduced so we are not discussing income tax for high earners.

We do. When you start factoring hidden cliff edges and marginal rates. I have now had to change dentist. My dentist has cut their hours to get under 100k. She would need to earn about 150k to be on the same as what she is taking home now at 99k. What with the removal of the PA and child care. No other economy has an effective tax rate of 67 to over 100%

For their familial ties, for their culture, for their roots, they like the UK, I mean a bit of a silly question really.

Well 1/4 of a million who left last year haven’t. Twee thoughts won’t but a house or decent retirement.

Is the wealth tax this thread is referring to about people earning £100-£1500000 then, I thought wealth was concerned with assets as well as income and more in the 10 million plus range?

I haven’t RTFT so apologies if this has been mentioned.

Latest I see at House of Commons Library predicts a contribution to the economy of £1.51B this fiscal year from VAT on private school tuition.

Even if families are cutting back on other spending that is because more of it is being taken directly as taxes, not just the 20% of the expenditure that would ordinarily go to taxes.

Eg On a £20K tuition bill you are suddenly hit by VAT of £4K. You feel you need to cut back spending to cover it. Roughly 20% of that spending or £800 would go to HMG. But now the whole £4K goes to HMG.

Sources converge in saying that only about 6% of private school pupils have been withdrawn as a result of this policy. Devastating for SEND pupils with inadequate state provision, but that’s a different issue.

Happy to look at your sources