5 tax reforms that would raise billions
As inequality in the UK reaches record levels, and as major services such as the NHS and HMRC continue to drop service levels, one major solution could be found in a fairer tax system. It’s an idea that (mostly) has the support of the wealthy.
The richest 10% of British households own 43% of all wealth, so it’s not surprising that wealth taxes are a popular idea.
A recent survey by YouGov, testing support for tax reforms on the country’s wealthiest people, found that 73% of the population would back an additional 2% tax on wealth over £5 million and an extra 1% on wealth in excess of £10 million.
That public support crosses party lines. Among Conservatives, 69% support the additional tax at the £5 million threshold, and 77% at the £10 million threshold. Labour voters are more likely to support additional taxes at either threshold, with 83% in support of applying a tax at £5 million and 86% at £10 million.
More surprising than the cross-party support, according to Rachael Henry, Head of Advocacy and Policy at Tax Justice UK, is that even 66% of wealthy people thought they were under-taxed and supported higher wealth taxes
So, why is such a wealth tax not yet a reality?
“We did a survey of a representative section of MPs to see how they felt about wealth taxes, and just 38% of MPs think that there should be more wealth taxes in the UK,” Henry says.
“So, the politicians are out of step. Politically, tax is apparently a contentious area. It incites big emotions. But it’s also a very important aspect of public policymaking.”
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