There needs to be a wealth tax in the upcoming UK budget

The tax system there is unfair and unbalanced. Wealth in the UK is concentrated in the hands of roughly 20,000 people while millions cannot afford to live. A 1% tax on assets over £10 million will not even be noticed, but it will make a huge difference to the public coffers.

And on that topic, energy bills. Why is there VAT on them? It's cold in the UK now and so many people this winter will have to choose between heating and eating, while paying an extra 5% on energy bills that they're already struggling to pay.

How does that make sense, especially if you take flying. No VAT on flights. So we have a necessity that has VAT and a luxury that doesn't. Half of those in the UK don't fly, and approximately 10% of those that do take approximately half of all flights. Holidays are luxuries. Energy is not.

Fix the tax system.

SunshineGirl · 36-40, F

It is one solution, but be wary of pinning all hopes on a single policy. Beyond real estate assets, this would be a difficult tax to assess and collect.

We have a progressive income tax system, let us use it. Add 1% to all income tiers, then increase the starting thresholds so that the poorest pay nothing at all and the "squeezed middle" feels like its income is going a bit further.

I don't like the idea of putting all the strain on Council Tax and VAT, which will disproprtionately hit the poorest in society.

G7J2O · 36-40, MNew

@jshm2 OK, but that doesn’t mean wealth taxes don’t work. Most UK high-net-worth wealth is still held in UK property, UK businesses, UK investment vehicles, and UK-based assets that can be taxed. Other countries like Norway, Switzerland (some cantons), Spain, and parts of Canada already tax wealth or net worth on domestic holdings.

A UK wealth tax wouldn’t require taxing assets in China or India. It would tax UK-resident individuals on their global assets just like income tax already does. If someone lives in the UK, they already have to declare worldwide income and gains. A wealth tax works the same way. The idea that billionaires have no taxable assets here simply isn’t accurate.

The broader point still stands I think: the current system taxes income more heavily than accumulated wealth, and that’s why people argue it’s unbalanced.

meJess · F

The tax on flights is Air Passenger Duty, you just don’t see it in the ticket price. It’s generally higher than VAT.