Read on Twitter
There’s so many ways to tax the wealthy before needing a wealth tax.
A thread https://twitter.com/rebeccaoco/status/1336761651585036289
A thread https://twitter.com/rebeccaoco/status/1336761651585036289
1. Lower ISA allowances
We’re letting wealthy couples move more money into tax advantaged savings and investment products than the average household earns per year
We’re letting wealthy couples move more money into tax advantaged savings and investment products than the average household earns per year
2. Lower the annual allowance on pensions, and remove the 3 year carry forward rule
Again, we’re letting the highest earners make, and get tax relief on, higher pension contributions than most households earn in a year
Again, we’re letting the highest earners make, and get tax relief on, higher pension contributions than most households earn in a year
3. As in other countries, insist retirees take minimum income withdrawals from their pensions
Right now we have people living off other assets (reducing their potential inheritance tax liability) and not drawing taxable income on the pensions they got generous allowances to fund
Right now we have people living off other assets (reducing their potential inheritance tax liability) and not drawing taxable income on the pensions they got generous allowances to fund
4. Again, as in other countries, make a distinction between short term capital gains (from speculating) and longer term capital gains (from investing)
Charge more on the short term gains, don’t put off people realising long term gains
Charge more on the short term gains, don’t put off people realising long term gains
5. Kids, or ‘junior’ ISA allowances are too high too. No one is saving that amount on average incomes. Only the wealthiest are fully using them to pass assets down through generations
6. Don’t bash the super rich too much. They are highly mobile. One billionaire buying a few Lamborghinis pays more in VAT here than some people pay from a lifetime of work. I’d rather they bought them here than in another country.
7. I’ve run out of ideas and my tea is getting cold
With apologies to my clients who might read this. I’ve got you and your interests in my heart, but I’ll also tell you why I think these are better than one off punitive wealth taxes
Real wealth comes from working/building a business, saving and investing, not tax allowances
Real wealth comes from working/building a business, saving and investing, not tax allowances
