Menu

  • U.K. Urged to Levy $350 Billion Wealth Tax to Pay for Pandemic

    From bnnbloomberg.ca

    A one-off 5% tax on wealth in the U.K. could raise more than 260 billion pounds ($348 billion) to help fix the coronavirus-hit public finances, according to a panel of experts. In a report published Wednesday, the independent Wealth Tax Commission called for a charge of 1% a year for five years on individual assets above 500,000 pounds. About 8 million residents would be affected. The debate over wealth taxes has gained momentum as the government considers how to address its fiscal situation, with the Office for Budget Responsibility predicting borrowing is on course to reach almost 400 billion pounds in the current ... (full story)

The commission, which is made up of academics, policy makers and tax practitioners....

Remind me how much are these people paid themselves again?? ROFL

I dont mind paying extra tax and contribute my share but it makes me boil when my tax goes to those couch potatoes and baby mass production machines who complains about anything under the sun of not being treated with dignity........"the 5 bed council I live in is not enough for my 8 kids!!!" , FGS!
I wouldn't say that somebody with individual assets of 500k is wealthy. A fairly modest home would set you back that nowadays.

2 bedroom flat for sale in Merton Road, Wandsworth, SW18 (rightmove.co.uk)

It does make sense why Jim Ratcliffe and James Dyson moved to Asia/Monaco. They could probably see the writing on the wall, well to be honest anybody who lives in Western nations (w a few exceptions) can see the writing on the wall.
Quoting Steamroller
I wouldn't say that somebody with individual assets of 500k is wealthy. A fairly modest home would set you back that nowadays. It does make sense why Jim Ratcliffe and James Dyson moved to Asia/Monaco. They could probably see the writing on the wall, well to be honest anybody who lives in Western nations (w a few exceptions) can see the writing on the wall.
500K is a peanut figure to throw as a large proportion of middle classezzz are already in that band due to "property boom". Therefore not likely to going to be limited to the small 8million these academics and tax avoidance practitioners preached about
OR, the EU can simply impose duties on goods from UK and use the money for Pandemic !
Better still , just inflate the debt away, (print debt off the books) that way the obligation is spread over the whole population
, any way who decided only the “wealthy” should pay for the government’s support of businesses and unemployed during the pandemic? , those who received the benefits should also help to contribute to its “repayment “ back to the CB Bank of England. And finally ,who is ever going to be able to “repay” the trillions of debt for the decades leading up to C19 ? It is just being used as an excuse to mask government mismanagement .

Some honesty and realism wouldn’t,t go amiss here?
Old Dog Kiwi
It's always the crowd-pleaser: "tax the wealthiest", despite the fact they already pay a huge proportion. Whilst smart to tax something immobile and illiquid for short-term gain, even if you CAN do the required bureaucracy more quickly than the tax accountants can react (therefore, doubtful), it also means that those wealthy people fly the coop and it takes generations to return, if ever they're inclined.
"Tax the wealthiest" cries are always from people not affected by it, so in any other words is always actually "tax anyone else other than me", as profferred by the previous entries above.
Quoting DaJoWaBa
It's always the crowd-pleaser: "tax the wealthiest", despite the fact they already pay a huge proportion. ..... "Tax the wealthiest" cries are always from people not affected by it, so in any other words is always actually "tax anyone but me...
Yes Cant disagree. And Ive been a victim of it.
However perhaps we should also consider the growing and disturbing malaise in many western democracies of an increasing Weath/Income gap. And IMHO needs to be addressed to safeguard society as AI and technology is fast deskilling an entire swathe of middle income and low income jobs.
Personally I see a key function of society to flatten inequality which I personally believe is poisonous to a healthy and happy society.

Income Gap Example: in 1978, CEO earnings (US) were roughly 30 times the typical worker’s salary.
Today they are +250 times.
Warning: A Dangerous Subversive: 1% of comments CoCed
Think answer is simple, have a 30 year gilt pot that will be paid back from a 5% Inheritance tax across the board on all the exemptions at present, be that the 7 year rule, business exemption, personal allowance, etc , etc
Seems completely fair to me as all the exemptions have been propped up over 5% by the government spending.
Quoting itsonlyme
Think answer is simple, have a 30 year gilt pot that will be paid back from a 5% Inheritance tax across the board on all the exemptions at present, be that the 7 year rule, business exemption, personal allowance, etc , etc Seems completely fair to me as all the exemptions have been propped up over 5% by the government spending.
sounds like the same thing wrapped another way
#doyourownanalysisordietryin
Quoting RossEdwards
{quote} Yes Cant disagree. And Ive been a victim of it. However perhaps we should also consider the growing and disturbing malaise in many western democracies of an increasing Weath/Income gap. And IMHO needs to be addressed to safeguard society as AI and technology is fast deskilling an entire swathe of middle income and low income jobs. Personally I see a key function of society to flatten inequality which I personally believe is poisonous to a healthy and happy society. Income Gap Example: in 1978, CEO earnings (US) were roughly 30 times the...
Same thing in the UK. Over the years the multiple between what a CEO earns in comparison with an employee has widened considerably over the years. Thus inequality has grown, yet house prices and other items continue to grow faster than wages, resulting in less disposable income which, in turn, affects economic growth. All this without taking into consideration social issues which may be connected to the rise of leaders like Trump, and his ilk in other countries, who appeal to those who feel they have been left behind when the economic cake is being shared out in their respective societies.
every Saint has a past. Every Sinner has a Future
Quoting RossEdwards
{quote} Yes Cant disagree. And Ive been a victim of it. However perhaps we should also consider the growing and disturbing malaise in many western democracies of an increasing Weath/Income gap. And IMHO needs to be addressed to safeguard society as AI and technology is fast deskilling an entire swathe of middle income and low income jobs. Personally I see a key function of society to flatten inequality which I personally believe is poisonous to a healthy and happy society. Income Gap Example: in 1978, CEO earnings (US) were roughly 30 times the...
I do agree with your sentiments about inequality and the likelihood of condensation of the proceeds of the last decade and in future in the pockets of the few. I can't say I have the answer(s) but there are many ways of "skinning a cat" or, as in the best tax regimes, "plucking the goose with the least amount of squawking".

I forgot to add in my previous post: offhand I can't think of any temporary tax which doesn't become permanent. It's pertinent to the point about wealthy leaving and not coming back for generations, if at all or at least changing behaviour in a cat and mouse game (Lots of animal cliche's in this post).
Addendum: taxation only ever looks at the 'cost' angle, never at how to promote growth and the generation of more income for all by means other than government intervention and encumbering future generations with the chains of debt.
When a tax doesn't produce the proceeds the government calculated, then the solution is always yet more taxes in something of a descending spiral and it chokes the growth essential for providing increased tax income. The UK is already at a very high proportion historically and MIGHT be in danger of pushing it over the tipping point.
Concentrating on promoting and investing in a higher productivity economy would be better, IMO.
Quoting turnip15
{quote} Same thing in the UK. Over the years the multiple between what a CEO earns in comparison with an employee has widened considerably over the years. Thus inequality has grown, yet house prices and other items continue to grow faster than wages, resulting in less disposable income which, in turn, affects economic growth. All this without taking into consideration social issues which may be connected to the rise of leaders like Trump, and his ilk in other countries, who appeal to those who feel they have been left behind when the economic cake...
Yes, I too have a problem with parasitic CEO's brought in to scalp off whatever they can. I applaud genuine entrepreneurs who take risk with their own livelihoods and succeed. I congratulate Elon Musk, for instance. I don't begrudge him the paper wealth he's accumulated, at this moment in time. If others believe Tesla is worth that amount, more fool them. I'd congratulate him for all the staff he has engaged in well-paid jobs and I'd be even more congratulatory if the employees all by default were given a genuine stake in the business as part of their pension rights. He's running a high margin, high productivity business. I have a dilemma when it comes to Bezos. I congratulate him for the belief, commitment, dogged determination and all those years reinvesting in the business but I'm not sure the employees have the benefits of being part of the team right now, unless they had a stake in the business early on or, as I suggest, as part of their pension pot.
However, I believe all CEO's brought into a business (I have been that person) and who have no skin-in-the-game before they join a company should be paid income only, based on an employee-denomination factor, and they get the same stake in the company as employees do going forward, not retrospectively, and any bonuses should only be paid on the basis of cashflow on the balance sheet.
All idealistic but hey-ho.
Quoting NotBoris
I dont mind paying extra tax and contribute my share but it makes me boil when my tax goes to those couch potatoes and baby mass production machines who complains about anything under the sun of not being treated with dignity........"
Totally agree with that. The UK has spent the most on coronavirus amongst G7 countries, for the worst outcome. Perhaps it's time to stop the wasteful spending?
Quoting NotBoris
The commission, which is made up of academics, policy makers and tax practitioners.... Remind me how much are these people paid themselves again?? ROFL I dont mind paying extra tax and contribute my share but it makes me boil when my tax goes to those couch potatoes and baby mass production machines who complains about anything under the sun of not being treated with dignity........"the 5 bed council I live in is not enough for my 8 kids!!!" , FGS!
To cheer you up a little more boris. 2016/7 31% of budget spent on social protection. We were pretty much at full employment anyone else without a job didn't want one or were unemployable. NB if memory serves me right we STILL ran a budget defecit with the most income from tax revenue in history.
That 31% ratio is going to get bigger!! So the tax must rise.
Were heading for a good deal of want to works without any openings. The jobs created seem to be ok if you want to spend the rest of your life delivering stuff and not gonna pay the same you were on in yer old job. (Rig worker flipping burgers)
Brexit? irrelevant! HA! grab yer popcorn the next decade is gonna get tasty!
The elites think we are stupid. They are in the main quite correct.
  • New Comment
  •  Guest
  • | IP XX.XX.9.172
Join FF
  • Story Stats
  • Posted: Dec 9, 2020 4:28am
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 16  /  Views: 3,076