“A progressive wealth tax is a critical step forward, and one that we urge the UK government to take.”
A group of leading global economists have urged the UK government to implement a wealth tax to tackle extreme levels of inequality in the country, a move they say would position Britain as a global leader in progressive tax policy.
The economists warn that with wealth concentration in the UK reaching alarming levels, a wealth tax would not only raise ‘billions of pounds’ but also cover a multibillion-pound shortfall in the public finances.
Among the economists to have shared a letter with the Guardian calling for a wealth tax are Thomas Piketty, known for his work on wealth inequality, Indian development expert Jayati Ghosh, former Colombian finance minister José Antonio Ocampo, and economist Ha-Joon Chang.
They write: “Data shows us that a tiny minority of people now own an outrageously imbalanced share of the country’s wealth. Fewer than 50 families own more than 30 million people in the UK, while globally the richest 1% own more than 95% of humanity.”
The economists add: “A modest net wealth tax on assets over £10m could raise enormous sums of money. This would affect a small minority of people, and the tens of billions of pounds in revenue can be reinvested in healthcare, education and infrastructure, alongside tackling climate breakdown to build a stronger, more resilient economy. That only a small number of people would pay it isn’t a weakness in the policy, but a magnifying glass on the extreme inequality of wealth in the country.”
They conclude by urging the government to implement a wealth tax: “Keir Starmer and Rachel Reeves can build a tax system fit for the 21st century – that promotes fairness, first-class public services and good living standards for everyone. We cannot allow extreme wealth inequality to deepen while millions of people are consigned to struggle for basic quality of life.
“A progressive wealth tax is a critical step forward, and one that we urge the UK government to take.”
Business Secretary Jonathan Reynolds has ruled out what he described as a ‘daft wealth tax’. He told GB News: “I say to people: ‘Be serious about this.’ The idea you can just levy everyone … What if your wealth was not in your bank account, what if it was in fine wine or art? How would we tax that? This is why this doesn’t exist.
“There’s a lot of populism out about this, and I’m frustrated. I see colleagues sometimes say this in parliament and I say: ‘Come on, get serious.’”
Basit Mahmood is editor of Left Foot Forward
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