The Daily T Why Starmer won't rule out a wealth tax
Jul 9, 2025
In a lively debate at Prime Minister's Questions, Keir Starmer's potential wealth tax is scrutinized, raising concerns among savers and homeowners. Discussions unravel the implications of a proposed 2% tax on assets over £10 million, reflecting on historical outcomes and public sentiment. Meanwhile, Heathrow Airport introduces a soundscape to soothe anxious travelers, prompting a humorous exploration of flying fears contrasted with a love for aviation. Tune in for economic insights blended with personal anecdotes!
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Wealth Tax Challenges Globally
- Wealth taxes are technically challenging to implement due to valuation and collection difficulties.
- Many countries have repealed or narrowed wealth taxes because of exemptions and enforcement issues.
Wealth Tax Exemptions Undermine Revenue
- Wealth taxes tend to face pressure to exempt major assets like businesses and homes.
- These exemptions can reduce the taxable base by 90%, undermining tax revenue goals.
Capital Gains Tax as Alternative
- Reforming capital gains tax may be more effective and progressive than wealth taxes.
- Capital gains tax inherently targets high asset owners and is simpler to administer.