With both of the main political parties using the tactic of blaming their predecessors in order to justify austerity and wage repression, Britain is trapped in a permanent austerity doom loop.
Wouldn't it be a breath of fresh air if Rachel Reeves actually made a bold move: taxed the very wealthy, ended tax havens and used that money for the good of the whole population?
When I see the economic analysis of people like Gary Stevenson I actually find it hard to understand how the Labour and Conservative parties aren’t going for wealth taxes!
Thatchers dream was of a property/shareholder democracy, what we’re ending up with is a form of neo-feudalism! Force the rich to sell their assets to people like us!
The wealth of the lower and middle classes is decreasing all of the time and it’s hard to be a capitalist if you don’t own and can’t own any capital!
A wealth tax is incredibly hard to implement and not very effective in raising revenue. Twelve countries have tried it, but seven subsequently dropped the tax, and really only Switzerland and Luxembourg managed to make it work. It's extremely difficult to measure wealth accurately, and anything liquid is very mobile. In France, it is estimated that "the wealth tax earns the government about $2.6 billion a year but has cost the country more than $125 billion in capital flight since 1998." I think a wealth tax is one of those great ideas that will sadly never work.
If I were in Reeves' shoes, I would add a couple of bands to Council Tax. It acts as a pseudo-wealth tax, can be (relatively) easily implemented, and is well understood by all. You cant move your house to a tax haven and Council Tax is not easily avoided. It will also have the effect of freeing up housing by encouraging downsizing.
The bankers understand exactly what they are doing...
More of the same is no change at all!.
Or we could vote Green.
MMT Econ basics: https://mrkeconomicsmmtgeorgism.blogspot.com/2023/08/mmt-economics-basics.html?m=1
Lie were out of money
As usual you're correct in your summation.
Wouldn't it be a breath of fresh air if Rachel Reeves actually made a bold move: taxed the very wealthy, ended tax havens and used that money for the good of the whole population?
When I see the economic analysis of people like Gary Stevenson I actually find it hard to understand how the Labour and Conservative parties aren’t going for wealth taxes!
Thatchers dream was of a property/shareholder democracy, what we’re ending up with is a form of neo-feudalism! Force the rich to sell their assets to people like us!
The wealth of the lower and middle classes is decreasing all of the time and it’s hard to be a capitalist if you don’t own and can’t own any capital!
Hi Ryan,
A wealth tax is incredibly hard to implement and not very effective in raising revenue. Twelve countries have tried it, but seven subsequently dropped the tax, and really only Switzerland and Luxembourg managed to make it work. It's extremely difficult to measure wealth accurately, and anything liquid is very mobile. In France, it is estimated that "the wealth tax earns the government about $2.6 billion a year but has cost the country more than $125 billion in capital flight since 1998." I think a wealth tax is one of those great ideas that will sadly never work.
If I were in Reeves' shoes, I would add a couple of bands to Council Tax. It acts as a pseudo-wealth tax, can be (relatively) easily implemented, and is well understood by all. You cant move your house to a tax haven and Council Tax is not easily avoided. It will also have the effect of freeing up housing by encouraging downsizing.
Best,
Sam