economy
The case for Labour to introduce a wealth tax has never been stronger
A 2% levy on fortunes above £100m – with no exemptions – could begin to reverse decades of rising inequality
TL;DR
- Andy Burnham and Wes Streeting have suggested a potential tax on the wealthy if Labour wins leadership.
- Research indicates that billionaires pay a much lower percentage of tax on their income and wealth compared to the general public.
- Economist Gabriel Zucman advocates for a 2% wealth tax on assets exceeding $100 million, with no exemptions.
- This proposed tax aims to be workable and fair, and could be implemented by individual governments without international coordination.
- Measures could be put in place to ensure that wealthy individuals who leave the country continue to be taxed.
- The article argues that such a tax would not harm wealth creation but could help reduce extreme inequality.