A one-off "wealth tax" that could raise as much as £260 billion, should be implemented in preference to increasing general taxes, a report has recommended.
The Wealth Tax Commission, a body made up of academics, policymakers and tax practitioners has suggested that if the Government decides to raise taxes as part of its response to the Covid-19 crisis, a one-off "wealth tax" should be implemented in preference to increasing general taxes on work or spending
The coronavirus crisis has exacerbated existing financial inequalities, with people in professional or managerial jobs finding it easier to continue their work from home during the pandemic in contrast to those in lower-paid jobs where working from home is not an option. Struggling sectors such as the arts, hospitality and retail contain many employees on relatively low incomes.
The Commission said that one-off taxes have been used after major crises before and by setting a threshold of £1 million per household – assuming it contains two people with £500,000 each, and a rate of 1% per year on wealth above the threshold – a one-off wealth tax would raise £260 billion over five years, after administration costs.
Rebecca Gowland from Oxfam said: "It is morally repugnant to allow the poorest people to continue to pay the price for the crisis, when it is clear that a fair tax on the richest could make such a difference."
Dr Andy Summers, an associate professor at the London School of Economics said: "A one-off wealth tax would work, raise significant revenue, and be fairer and more efficient than the alternatives."
ExcludedUK is a non profit grassroots NGO founded to provide a platform for those denied fair and adequate financial support from the Governments COVID-19 Support schemes since the pandemic began in March. With a community of over 60,000 members across all industries, age groups and regions, we estimate that three million UK tax payers have been excluded from the same support as others, which has lead to thousands of people losing their livelihoods, careers, and homes, and sadly, for some, their lives.
ExcludedUK has been fundraising to provide urgent help and support for those affected in the forms of business and career advice, debt support and 121 counselling sessions within 48 hours. Please find more information on our website www.excludeduk.org.