Panic Over Labour Wealth Tax to Fill £30 Billion Black Hole as Millionaires Flee UK
Alarm has set in as Labour grandees and union paymasters push Rachel Reeves to bring in a wealth tax to raise spending and plug a yawning £30 billion black hole in Government finances, despite millionaires already fleeing the country. The Mail has more.
The prospect of a charge on the assets of the well-off has been mooted as the Chancellor scrambles to fill a potential £30 billion black hole in the public finances.
Lord Kinnock, who led Labour between 1983 and 1992, fuelled speculation yesterday by suggesting ministers were looking at a 2% levy on assets worth more than £10 million.
He said the move could raise up to £11 billion a year and be popular with a “great majority of the general public”.
Left-wingers and unions have lined up behind the idea, as they knock back tentative efforts to curb spiralling benefits costs.
However, the Tories warned that there was already an alarming exodus of wealth-creators from Britain thanks to Labour’s policies – saying the only people who would suffer from the raid would be the least well-off.
Ms Reeves seems to be backed into a corner as she is adamant about sticking to her strict fiscal rules on borrowing.
She has also said Labour will keep the manifesto pledge not to hike taxes on income tax, employee national insurance or VAT.
But experts have suggested that the stalling economy together with spending pressures could mean she has a £31 billion funding gap to fill at the Autumn Budget.
The respected IFS has warned the tax increases might even need to be on a similar scale to the record £41 billion hike in the burden imposed last year.
Ms Reeves previously said she was “not interested in a wealth tax”, and Downing Street stressed today that the Government had already taken steps to make sure those with “broadest shoulders” pay the most.
But the PM’s spokesman stopped short of completely ruling the step out, arguing that announcements would only come at the Budget. …
Tory Shadow Chancellor Sir Mel Stride condemned a tax on assets over £10 million as “the worst thing to do”.
He said Labour’s tax hikes had already seen around 10,000 to 15,000 high net worth individuals leave Britain.
“Some people, the socialists, might say ‘well, who cares about that?”, he added.
“Well, the problem is that the amount of tax that those people have been paying requires about a third of a million people on average earnings to cover that lost tax that’s just gone straight out of the door.”
Worth reading in full.
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https://www.conservativewoman.co.uk/were-the-ones-who-should-be-crying-over-reevess-incompetence/
And this article by Daniel Jupp at TCW is the perfect complement. Really, really worth the time.
Many of our senior politicians and media bossses have participated in the WEF Young Global Leaders program. WEF believes in open borders, ‘uman rights, climate emergency and world government. Examples:
Blair
Brown
Cameron
Osbourne
Clegg
Milibands
Sunak
Merkel
Macron
Merz
Sanchez
Von der Leyen
Rachael Reeves
David Lammy
Wes Streeting
Shabana Mahmoud
Liz Kendall
Andy Burnham
Sidiq Khan
Dame Carolyn McCall ITV
Ed Balls ITV
Tim Davie BBC
Alex Mahon channel
Oliver Duff Independent
Jon Slade FT CEO
Roula Khalaf FT Editor
Anna Bateson CEO Guardian
Katharine Viner Guuardian Editor.
Melanie Dawes CE Ofcom
Bloody hell !
That’s quite a long list of useful idiots!
Then they brought in Common Purpose trained managers…
It is all very well to tax an asset (well, not really) in an appreciating market, but it will not be acceptable at all if the asset is depreciating.
But of course it is part of the big reset to get rid of all personal wealth, and it will achieve this over a number of years.
A 2% tax on wealth, if you get a 4% rate of return is similar to a 50% income tax. But given we almost have a 50% income tax already, it would mean that a 4% return would yield almost nothing.
Assets that have a lower yield, say farmland at 1-1.5%, would lose each year.
Better to retire to foreign sunnier climes. People don’t stay here for the weather.
What the morons like Blubbing Rachel – reminder to self to put that pic on my phone and whenever I need a good laugh open it – never grasp is that wealth in an asset is not always matched with lots of funds. Farmers are a perfect illustration of an industry with very low income for the effort put in and as such they are cash poor.
The second order effect of wealth taxes on assets that don’t have a yield capable of paying said wealth taxes (like farmland) is that the asset value will drop precipitously and thus the wealth tax will raise less than expected.
A problem is the market disruption that will occur as the asset prices adjust.
You will own nothing and be happy, because Sir Keir and ED say so.
Thirty billion, thirty one billion, 41 billion. Any advances?
Twenty two billion £ is so last year so let’s get with the program.
One things for sure, this mob of traitors are fully committed to making a show of destroying Great Britain. Couldn’t they get a move on though? They are so utterly firkin boring.
I suspect that in their neo-communist eyes they’re not wrecking it but transforming it into the socialist techno state of their dreams. A bureaucratic nirvana where they control and decide things and the population does as it’s told. And the plebs are so happy that every four years they go to the polls to express their satisfaction with their servitude (not that they will have the chance to express otherwise.)
Once they’ve driven away the rich, who are apparently already leaving at an unprecedented rate, they’ll struggle to get them back.
Once they’ve gone and find wherever they go is better, what possible reason would they have to return?
Diminishing returns will require strong action… what’s the betting that they’ll be looking at taking everything that you earn and handing it back out as universal basic income for everyone?
Until everyone stops working. Why work to support everyone else? Watch for a plethora of disability or ‘my brain hurts’ claims.
16.1 million registered disabled already, apparently. That’s practically 1 in 4 of us…
Claims to Personal Independence Payments (PIP) are already running at over 500 per day.
I share your views.
What happened to Global Britain?
It’s fair to say that Brexit isn’t quite going according to plan.
Yes, the establishment has sabotaged the project at every opportunity. But what did the promoters of the project expect? I knew they were going to encounter resistance at every turn – even before I became ever more cynical post-Covid – so why did Farage, Johnson, Gove and co. not have plan?
Because they’re a bunch of bullshitters with no vision and no plan. Great bullshitters, that we can grant them.
Is there any sign that Farage has learned anything from the experience or has he just become even better at political agitation and little else? Is Reform going to get anywhere?
It’s worth asking these questions when one looks at the car wreck that is Brexit.
Agreed. This country desperately needs someone with a shall we say more Trumpian approach.
Exactly – we need someone with a long term vision who can say this is what we are going to do and, more importantly, WHY. Also they need to say we are going to do this and we don’t give a shit what twitter says in the short term
F. twitter. We should be saying we don’t care about the EU, NATO, IMF, BIS, Billy Gates, WEF the whole bloody lot of them and if any want to pop their heads over the parapet like Bliar they need to be told to STFU or it’s Porridge Time.
Use their shit against them and have Bliar convicted of war crimes at the International Criminal Court so Two Tier will have to gaol him.
And Kneel will see what awaits him.
👍👍👍
Johnson and Gove are opportunistic grifters and had no interest in an independent UK.
Farage – let me check… wasn’t in Government.
If you start by saying the opportunities Brexit presented were thwarted, you can hardly say it was a “car wreck”. There cannot be a car wreck with no car.
You might want to consider the car wreck is journey’s end of having been stranded in a Customs Union (primary function to protect profits of producers at the expense of consumers, protect jobs of some at the expense of jobs of others) which strangled innovation and tech development, for 47 years. And aren’t Germany and France doing well?
But supposing the UK had remained – your preference I guess – would we now be living it up with Champagne and canapés, milk and honey flowing throughout the land?
No, certain Technocrats would be living it up with Champagne and canapés, milk and honey flowing. Ordinary people, not so much.
My preference is to be as free as possible from government control.
Britain currently has a government that is increasing it’s control over our daily lives and confiscating more of our money.
The previous government put me under house arrest for no good reason. And pursued insane policies regarding climate change, trans people, passed censorship legislation.
I think it’s fair to say that Brexit or no Brexit, it makes little difference. I just find it quite funny that people believed it would change anything. It’s so obvious that the people behind it all were bullshitters out of their depth with everything except selling stories to the gullible public. Including Farage.
Nothing would please.me more than to be proved wrong.
What happened to global Britain? It all went pear shaped.
Another classic leftist delusion:
The problems we are facing not because our policies are wrong! No, our policies are always right. We just haven’t squeezed the rich enough yet!
Example:
Stalin 1933: we are starving because the kulaks are hiding the produce!
There’s a very real danger, I think, that once anybody has left the country it will be difficult to lure them back, as they find wherever they end up is a rather happier place than the one they left.
Sadly, I don’t have the means to leave the country, but I did leave London, and wild horses couldn’t drag me back there now…
Laffer Curve, is a parabola: 0% tax = £0 revenue; 100% tax = £0 revenue because nobody would work or invest. There is a “sweet spot” or optimal rate which gives maximum tax receipts without discouraging economic activity. Where this is depends on strength of the economy, cumulative effect of all taxes being applied and tax structure, and individual behaviour (like moving to another Country, reducing assets.) A wealth tax may therefore push taxation into the wrong side of the Laffer Curve, and collect much less revenue than expected and cause high wealth individuals to leave or disinvest. (Socialists deny the existence of the Laffer Curve, and indeed economics.) So what effect a UK wealth tax will have will depend where we are on the Laffer Curve – we already are on the wrong side given the fall in economic activity and current flight of capital. Wealth taxes historically often affect Middle Class taxpayers too due to inflation, increased prosperity, Government lowering thresholds. Wealth taxes are levied on value of assets minus liabilities. Working this out is not easy, as asset values vary as do liabilities. Also, they can bring diminishing returns as those affected liquidate assets to pay the… Read more »
We pay the interest because our governments spent money we didn’t have.
I don’t have a fundamental objection to borrowing money for a large capital project. On a personal level, how else could one buy a house or perhaps a car? But government borrowing money explicitly ‘to keep the lights’ on, by capping energy below cost price and susidising the suppliers (for example) is insane. It’s the sort of behaviour that at a personal level gets people put on a pre-payment meter or in bankruptcy proceedings. At a government level going cap-in-hand to the IMF.
Keep watching Germany as they are subsidising their energy costs while the economy goes down the plughole and yet they still have lower bond interest than us. The new fascist government will soon see that change as company closures so far this year are at record levels.
This policy is being driven by Arun Advani of Centax and that is where our attention should be directed.
The problem with the idiots who cheer this sort of idea, as Kinnochio claims, is that they will be people with modest value houses and modest value pension savings. While ten million sounds an incredible amount to nearly everyone, when it doesn’t generate the income the neo-communists want, the banding will be lowered while inflation continues to push up the two largest assets people have, the modest house and the modest pension pot. Before you know it, many more people will be caught in the trap, just as they are in tax bands and the whole of the middle class will be paying 2% on assets they cannot liquidate without a major change in lifestyle or circumstances. But hey, the Kinnochio family, father , son and daughter in law, suck deep from the public teet with Westminster salaries and pensions and EU pensions so why should they give a stuff about the ordinary person.
Kinnock the absolute, absolute Champagne Socialist, when he was head of the Labour Party he was going to get rid of the Lords, but now funnily enough like other rank hypocrites in Labour Sadiq Khant anyone, Lord and Lady Kinnock gladly grabbed their titles, gone was the desire to remove the institution Then as is uaual with the Labour grandees, he is a multi millionaire, having had both him and his now dead wife ensconced on the fat teet of the EU as MPs enjoying tax free salaries, vast expenses and of course an absolute gold plated pension. All for achieving nothing, building nothing but making sure those who do and who through their taxes pay for his and his children who are also part of the same class, are screwed so Kinnock and co can get fat. Well information for the not very bright in Labour. The top 1% of tax payers pay circa 30% of the tax revenues, they are leaving in droves, and actually those a bit further down the ladder are also leaving, which means those on the lower alary rungs have to pay more, such that Kinnock and co can getlots of free stuff. Nowhere… Read more »
“Roll on the IMF stepping in so we can have an end to this bunch.”
Not quite, the country will be SOLD to the IMF.
‘He said the move could raise up to £11 billion a year and be popular with a “great majority of the general public”.
Just illustrating that the majority of the public are too stupid to trust with a vote. Too ignorant – or ridden with envy because they are failures in life and poor – to understand that a tax is to raise revenue and that a tax that produces a loss in income is a stupid idea.
I’ve just heard 16.1 million are ‘registered disabled’, that’s 23%… practically as close to one in four people as it’s possible to get.
Has there been a war nobody told us about? One in four. Seriously?
There were lockdowns and a Covid vaccine campaign. Many casualties.
Thank god Diane Abbott is not chancellor. I would hate to be discussing how she would be filling her budget deficit.
Taxman
Song by The Beatles ‧
Overview
Lyrics
One, two, three, four
One, two (one, two, three, four)
Let me tell you how it will be
There’s one for you, nineteen for me
‘Cause I’m the taxman
Yeah, I’m the taxman
Should five percent appear too small
Be thankful I don’t take it all
‘Cause I’m the taxman
Yeah, I’m the taxman
I’ll tax the street
(If you try to sit, sit) I’ll tax your seat
(If you get too cold, cold) I’ll tax the heat
(If you take a walk, walk) I’ll tax your feet
(Taxman)
‘Cause I’m the taxman
Yeah, I’m the taxman
Don’t ask me what I want it for
(Ah, ah, Mr. Wilson)
If you don’t want to pay some more
(Ah, ah, Mr. Heath)
‘Cause I’m the taxman
Yeah, I’m the taxman
Now my advice for those who die (taxman)
Declare the pennies on your eyes (taxman)
‘Cause I’m the taxman
Yeah, I’m the taxman
And you’re working for no one but me (taxman)
It’s not wealth tax, it’s an ownership tax.
No point having warnings about profanity and abuse on the comments section with articles on the topic of the present government.
How could Two-Tier stop millionaires leaving?
I know …… close the border 🙂
But obviously it needs to be kept open for the welfare claiming, “free everything,” criminal migrants.
So it needs to be a one-way closing of the border. I know …. we could rename the United Kingdom of Great Britain and Northern Ireland:
The United Gulag of Great Britain and Northern Ireland.
Socialist Monopoly. This was one of Dr Robert W Malone MD’s recent Friday Funnies.
Of course, Hasbro produced an official Socialist version of Monopoly and after an immediate pile-on, quickly withdrew it. Here’s an unhappy review:
https://www.polygon.com/2019/8/27/20830085/monopoly-socialism-board-game-hasbro-target
Who is Robert Malone?
https://www.petersweden.org/p/woah-robert-malone-appointed-as-vaccine
https://www.malone.news/ https://www.malone.news/about/