Funding the Future Why are the wealthy so wealthy?
Jul 17, 2025
Discover how the UK's tax system is tailored to favor the wealthy, allowing them to maintain their riches with low capital gains rates. Uncover the disparities that exist as the affluent benefit from substantial tax reliefs while everyday workers bear a heavier financial burden. Delve into the biases that preserve wealth across generations and the implications of these inequalities on the economy. This insightful discussion raises crucial questions about fairness in financial structures and the sustainability of growing wealth disparity.
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UK Tax System Favors Wealth
- The UK tax system favors the wealthy by taxing income from wealth at lower rates than income from work.
- Capital gains tax rates should match income tax rates to ensure fairness and raise more revenue.
National Insurance Bias Against Workers
- National insurance applies heavily on work income but not on investment income, creating a significant bias.
- This favors wealth accumulation for those with investment income and penalizes workers unfairly.
Inheritance Tax Benefits The Wealthy
- 95% of people in the UK do not pay inheritance tax due to high allowances and generous exemptions.
- Wealth passes through generations largely untaxed, especially for the very wealthy who gift early or use trusts.