July 1, 2024

How are you going to pay for it?

It’s a question that’s often asked of politicians, rarely well answered.

So today, I’m sharing this from The Taxing Wealth Report:

“The Taxing Wealth Report 2024 shows that there is the potential to raise around £90 billion
of additional tax revenue each year from fairly straightforward reforms to the UK’s existing tax

All of these reforms would result in additional tax being paid only by those who are better
off. Unless a person’s income comes mainly from investments or rents, very little of what the
Taxing Wealth Report 2024 suggests would have very much impact on them unless their
income exceeded £75,000 per year. This would, however, be fair. As the Taxing Wealth Report
2024 shows, those with wealth in the UK are massively undertaxed compared to those who
work for a living. Correcting this imbalance is entirely appropriate, simply in the interest of
social justice.”

Suggestions include:

1) Charging capital gains to tax at the same rate as income tax would raise £12 billion of extra tax per annum.

2) Restricting the rate of tax relief on pensions to the basic rate of income tax, whatever tax rate a person pays, would raise £14.5 billion of extra tax per annum.

3) Charging VAT on the supply of financial services, which are inevitably consumed by the best off, could raise £8.7 bn of extra tax per annum.

4) Charging an investment income surcharge of 15% on income earned from interest, dividends, rents, and other sources might raise £18 bn of extra tax per annum. Lower rates could, of course, be charged. This estimate assumes no such charge on the first £5,000 of such income a year, with a higher allowance for pensioners.

5) Charging national insurance at the same rate on all earned income, whatever its amount above the existing minimum, might raise up to £12.5 bn of extra tax per annum.

6) Investing £1 billion in HMRC so that it might collect all tax owing by the UK’s 5 million or so companies when 30% of that sum goes unpaid at present might raise £12 billion per annum.

You can read a summary of the whole report here: https://taxingwealth.uk/wp-content/uploads/2024/04/Taxing-Wealth-Report-2024-Summary.pdf

Or check out the full thing here: https://taxingwealth.uk/

Discipline makes Daring possible.