Calls for the richest people to pay more are becoming louder, and the huge sums that could be raised cannot be ignored
- Ben Tippet is a researcher and author of Split: Class Divides Uncovered
As the government raises taxes on working people and plans the biggest benefit cut in the history of the welfare state, many are calling for rich people to pay their fair share. A new net wealth tax could redistribute wealth, galvanise public support and generate huge revenues for the government. At the University of Greenwich, we estimate that such a tax on just the top 1% of wealthiest households in the UK could raise £70bn to £130bn a year – more than enough to pay for a high-quality universal care service, the NHS and more.
When it comes to taxation, we often hear the slogan that those with the broadest shoulders should bear the heaviest burden. A net wealth tax on the top 1% turns this slogan into a feasible policy. Net wealth encapsulates someone’s control over economic resources: this combines financial, property, pension and business assets, minus debts. Like a tailor, it measures the size of one’s shoulders in clear mathematical terms. A tax on this combined wealth of the top 1% has the power to generate billions of pounds each year.
