7 Comments

The bankers understand exactly what they are doing...

Expand full comment

More of the same is no change at all!.

Expand full comment

Or we could vote Green.

Expand full comment

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?

Expand full comment

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!

Expand full comment

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

Expand full comment