lara
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Post by lara on Apr 24, 2020 10:08:03 GMT
Just saw on Sky news a discussion on the possibility of the introduction of a wealth tax to help pay for the corona crisis. They were talking about a one off tax of 10% of net worth! Please tell me this doesn't have a chance of ever happening...
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hazellend
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Post by hazellend on Apr 24, 2020 10:27:57 GMT
Just saw on Sky news a discussion on the possibility of the introduction of a wealth tax to help pay for the corona crisis. They were talking about a one off tax of 10% of net worth! Please tell me this doesn't have a chance of ever happening... No chance. I can almost guess which socialist loony would bring this up.
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r00lish67
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Post by r00lish67 on Apr 24, 2020 10:31:25 GMT
Not seen the story, but it's an interesting point for debate. If not a wealth tax, then how do we pay the bill?
In my view, whilst it seems to causes a violent reaction amongst many, I've no objection in principle to a wealth tax and/or increased inheritance taxes. This despite me being a person who lives off his (pittance of) wealth. It's hardly unprecedented, Spain has a wealth tax right now (applies over 700,000 euros plus you get an allowance of 300,000 for your house).
Levels of generational inequality at present are pretty appalling, and without intervention this crisis will make it worse. A new intake of grads will have zero jobs to go to, and those in their 30's just recovering from a shaky start in 2008-2009 may be set back again.
I don't know whether a wealth tax is really the best answer, but I do know the answer shouldn't be 'tax the young'.
In practice though, I think the Tories introducing a wealth tax is about as likely as them proposing to build a statue of Jeremy Corbyn in the houses of Parliament. They might as well just hand over the baton to Starmer and co. today.
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james100
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Post by james100 on Apr 24, 2020 10:59:29 GMT
Did the discussion relate to this: www.theguardian.com/politics/2020/apr/22/wealth-tax-rise-could-raise-174bn-tackle-covid-19-expert-says ? I don't believe the current (right wing) government will do it. Many of the wealthy will simply leave / avoid and the Tories will have killed off their golden geese. But as a nation we appear to have champagne tastes with beer money attitudes when it comes to taxation regarding public health care, aged care and welfare payments. I think there are legitimate discussions to be had regarding taxation in general (current or deferred) and particularly of individuals who have benefited directly from state support over and above normal expectation during this crisis.
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IFISAcava
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Post by IFISAcava on Apr 24, 2020 11:14:51 GMT
"Wealth" tax too avoidable for rich non-doms/anyone who offloads wealth in a way that avoids taxation (see also: inheritance tax).
Much easier to tax more efficiently the main source of most people's wealth, and which is undertaxed in the UK: property (or even better, land value). Lots of good economic and pragmatic reasons for doing so (and not just via stamp duty which is optional and a disincentive to mobility).
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IFISAcava
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Post by IFISAcava on Apr 24, 2020 11:17:04 GMT
Talking of wealth, Scotland must be glad it isn't independent since the so called oil wealth that was the basis of much of their economic argument for independence has all but dried up now. Not much prospect of oil taxation revenue for some time to come.
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registerme
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Post by registerme on Apr 24, 2020 11:52:01 GMT
I think the chances of anybody introducing a wealth tax approach zero. Too much of this nation's wealth is tied up in property. To pay such a tax (and reduce any forward risk of more such tax) people would have to sell up. That would crash the market hard(er), which is in nobody's interests, least of all the government's, or indeed the opposition.
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Post by Deleted on Apr 24, 2020 12:53:10 GMT
There is probably more chance of the removal of capital gains tax.
huh?
have a look at countries that don't charge people who grow capital, they all appear to be very successful countries Swiss, New Zealand etc
We just get taxes that we can get past the electorate not ones that help drive a successful business environment
I suspect removing that tax would stimulate the economy.
BTW I consider capital gains tax as a form of wealth tax.
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cb25
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Post by cb25 on Apr 24, 2020 13:10:37 GMT
I think the chances of anybody introducing a wealth tax approach zero. Too much of this nation's wealth is tied up in property. To pay such a tax (and reduce any forward risk of more such tax) people would have to sell up. That would crash the market hard(er), which is in nobody's interests, least of all the government's, or indeed the opposition. Or the government could accept an IOU payable when the property is sold. Even if that money eventually got paid (and that's doubtful) it would mean only those with cash available would pay in the near term, hugely unfair.
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copacetic
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Post by copacetic on Apr 24, 2020 13:30:25 GMT
Quantitive easing is a form of wealth 'tax' on cash and fixed income investments. BoE prints money and lends to the government. This causes inflation so anyone holding cash and bonds loses while anyone in debt makes a gain. Government wins twice since they get the newly printed money, plus erosion of the real value of the national debt.
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IFISAcava
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Post by IFISAcava on Apr 24, 2020 14:28:43 GMT
I think the chances of anybody introducing a wealth tax approach zero. Too much of this nation's wealth is tied up in property. To pay such a tax (and reduce any forward risk of more such tax) people would have to sell up. That would crash the market hard(er), which is in nobody's interests, least of all the government's, or indeed the opposition. Or the government could accept an IOU payable when the property is sold. Even if that money eventually got paid (and that's doubtful) it would mean only those with cash available would pay in the near term, hugely unfair. They've done this with pension tax - pay now or defer ("scheme pays") - optional, but interest accrues if you defer. Government gets paid back as and when property is sold (or pension is taken for scheme pays). Notwithstanding the merits of the tax, doesn't seem unfair to me to be given this choice how to pay it
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IFISAcava
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Post by IFISAcava on Apr 24, 2020 14:30:01 GMT
Quantitive easing is a form of wealth 'tax' on cash and fixed income investments. BoE prints money and lends to the government. This causes inflation so anyone holding cash and bonds loses while anyone in debt makes a gain. Government wins twice since they get the newly printed money, plus erosion of the real value of the national debt. And props up asset prices (property, stock market)
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cb25
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Post by cb25 on Apr 24, 2020 15:03:10 GMT
Or the government could accept an IOU payable when the property is sold. Even if that money eventually got paid (and that's doubtful) it would mean only those with cash available would pay in the near term, hugely unfair. They've done this with pension tax - pay now or defer ("scheme pays") - optional, but interest accrues if you defer. Government gets paid back as and when property is sold (or pension is taken for scheme pays). Notwithstanding the merits of the tax, doesn't seem unfair to me to be given this choice how to pay it Even better, everybody requests deferral, government receives no money (immediately), at next election voters go for whichever party says "stupid idea, we'll cancel that"
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Post by westcountryfunder on Apr 24, 2020 15:41:12 GMT
Not seen the story, but it's an interesting point for debate. If not a wealth tax, then how do we pay the bill? In my view, whilst it seems to causes a violent reaction amongst many, I've no objection in principle to a wealth tax and/or increased inheritance taxes. This despite me being a person who lives off his (pittance of) wealth. It's hardly unprecedented, Spain has a wealth tax right now (applies over 700,000 euros plus you get an allowance of 300,000 for your house). Levels of generational inequality at present are pretty appalling, and without intervention this crisis will make it worse. A new intake of grads will have zero jobs to go to, and those in their 30's just recovering from a shaky start in 2008-2009 may be set back again. I speak only for myself and the financial position of my wife and myself, both retired. At a time when people round about have been furloughed, or have fallen through the gaps because of owning small recently established businesses, often with young families, I just know how lucky we are with our secure occupational and state pensions. Apart from the social effect and the considerable inconvenience of difficult-to-get home delivery slots, we are largely unaffected. We get a bit bored with taking exercise only locally and it appears that future holidays are likely to be problematic, but that's about it. So, compared with the pandemic's effect on a very large part of the population, we are fortunate. In the interests of overall fairness, I don't think I can object too much to a wealth tax, otherwise we most certainly are not "all in it together". Count your blessings, I say, and be willing to make your contribution towards emerging from this crisis, including its financial effects. In circumstances such as these I believe it is morally inescapable that those with the broadest shoulders should bear a disproportionate share of the burden.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Apr 24, 2020 16:12:26 GMT
There is ALREADY a Wealth Tax, it's called Inheritence Tax. Known as Death Duties in Oz, where a spade is, errrrr, a spade. Oh, and IT / DD doesn't exist anymore, it was abolished (in Queensland first), some 45 or so years ago. Nice place to die Oz, in more ways than one. And Inheritance Tax is also, IMHO, Double Taxation. ALL Governments are extremely wasteful, we all know that, they should spend what they have and collect, far more astutely. Including the NHS, which we all also know has a ludicrous number of "Managers" and "Consultants" not of the Medical kind.
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