Introducing a Wealth Tax

Introducing a Wealth Tax

Tax Research:

There are wide range of reasons for charging additional tax on those with wealth or income from investments (property, interest, dividends & others). These include:

  • Ending the prejudice within the tax system against those who work for a living;
  • Ending the incentive to avoid tax that so many people who use limited companies to offer their services, often in competition with those on PAYE, exploit at present;
  • Increasing the effective rate of tax for those on higher incomes so that we have amore progressive tax system as moves towards income equality demands;
  • Ensuring that those with the greatest capacity to pay do so;
  • Tackling the wealth gap;
  • Providing the resources required to provide public services to those most in need inour communities.


The taxation system requires reforms such as:

  • An investment income surcharge be included in the income tax system that would increase the tax rate on the savings and investment income of higher rate taxpayers by 15%.
  • Reforming capital gains tax to:
    • Reduce the annual allowance
    • Have the tax paid at income tax rates
    • Abolish entrepreneur’s relief
    • Improve tax compliance
  • Restrict some inheritance tax reliefs in advance of more thorough-going reform to raise £0.5 billion a year;
  • Review the long term possibility of a wealth tax.

French economist Thomas Piketty caused a sensation in early 2014 with his book on a simple, brutal formula explaining economic inequality: r is greater than g (meaning that return on capital is generally higher than economic growth).  Here, he talks through the massive data set that led him to conclude: Economic inequality is not new, but it is getting worse, with radical possible impacts.

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