New research by Jon Trickett MP has found that a Wealth Tax could raise £218.4 billion in extra revenue over 5 years.
The former Labour frontbencher is proposing a radical overhaul of the tax system in a new report, launched today, entitled: The Nature of Wealth in Britain: How Wealth Wields Power and the Case for a Wealth Tax.
The report includes four different options for a wealth tax including a one-off tax, an annual tax and a hybrid tax targeting increases in wealth. The median revenue of the four options is £218.4 billion, although the hybrid option would raise a further £85.7 billion.
It also finds that bringing taxes on dividends and capital gains into line with income tax would raise a further £127 billion in revenue over a five year period, whilst closing tax avoidance loopholes and tackling tax evasion would raise a total of £145.5 billion.J
Jon Trickett’s office has calculated that approximately £490.9 billion in additional tax revenue could be raised in a five year period if all the proposed changes were implemented.
The launch comes ahead of the Chancellor’s Autumn Statement that looks set to propose cuts to public services after the Chancellor has asked departments to find “at least 5 percent of savings and efficiencies from their day-to-day budgets”.
Jon Trickett, Labour MP for Hemsworth said: “A wealth tax would transform our public finances making money available for our neglected public services. We could afford to plug the social care funding gap and to give our key workers a pay rise. We could reverse local government and education cuts. We could rebuild Britain.
“It is also necessary to address extreme wealth inequality. Our political system is rigged in favour of global corporations and the super-rich. Wealth is turned into political power through donations and lobbying. Political power is used to advance policies that financially benefit the elite at everyone else’s expense. It is a cycle of inequality that leads towards oligarchy and threatens our democracy.
“Bringing taxes on wealth into line with those on income is both morally as well as fiscally correct. But it is also a bold policy which will appeal to both voters and the labour movement precisely because it has one of our core values, fairness, at its centre.”
Jeremy Corbyn MP agreed “The government keeps cutting spending on public services and attacking the incomes of the poorest, yet the wealthiest are allowed to keep piling up money. It’s time we tackled the gross accumulation of wealth and growing inequality, both in terms of class and region – redistributing wealth from the very richest to working people. I welcome Jon’s report and the national discussion it launches.”
Diane Abbott added: “This report is an important corrective to the nonsense that ‘there is no money’ left when it comes to funding public services including pay, of funding investment and tackling climate change.”
Image: Jon Trickett. Source: https://api20170418155059.azure-api.net/photo/g2eLCe7R.jpeg?crop=MCU_3:4&quality=80&download=true. Author: https://en.wikipedia.org/wiki/Chris_McAndrew, licensed under the Creative Commons Attribution 3.0 Unported license.
Subscribe to the blog for email notifications of new posts