Tax and Fiscal Policy

A wealth tax would be “counter-productive”, says IEA expert

In response to the Wealth Tax Commission’s Final Report calling for a one-off wealth tax, Mark Littlewood, Director General at free market think tank the Institute of Economic Affairs, said:

“Wealth taxes are counter-productive, risk flight of brains and money, and are extremely difficult to administer. 

“The vast majority of countries that have had a wealth tax later abolished it. Some practical drawbacks would be mitigated by introducing a one-off rather than annual wealth tax, but not all.

“As we emerge from this crisis the government should focus on creating wealth through tax cuts and deregulation, not indulging vain attempts at redistribution.

“There are many bad features of the UK tax system which need fixing, but the absence of a wealth tax isn’t one of them.”


Notes to editors

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The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems. The IEA is a registered educational charity and independent of all political parties.