Double Taxation is No Solution
3 September 2024
SUGGESTED
In the Media
Labour Market
Lifestyle Economics
15 November 2024
Matthew Bowles writes for CapX
IEA Development Manager Matthew Bowles has written for CapX arguing against the proposal for a wealth tax on the top 1%.
Matthew wrote:
“Taxing income and consumption is relatively simple. Analysing wealth is far more difficult due to the challenge of producing a modern-day Domesday book – a record of who owns what. This doesn’t currently exist, and even if it did, would change constantly.
“A further argument against wealth taxes is that they are a form of double taxation. Wealth is usually built up out of income, which is then used to build up assets. This, in essence, discourages savings as a means to avoid such taxes would be to simply spend all earned money at once.
“Unite should recognise the enormous contribution the wealthiest make to society instead of attempting to leech further off those who already prop up the public sector. Campaigners ought to recognise that millionaires who believe they have a duty to pay more tax already can. Voluntary payments can be made via direct bank transfer to HM Treasury. The fact that this amount each year is minimal suggests that maybe the tax rate is already a tad high.”
You can read Matthew’s full piece here.
Matthew wrote:
“Taxing income and consumption is relatively simple. Analysing wealth is far more difficult due to the challenge of producing a modern-day Domesday book – a record of who owns what. This doesn’t currently exist, and even if it did, would change constantly.
“A further argument against wealth taxes is that they are a form of double taxation. Wealth is usually built up out of income, which is then used to build up assets. This, in essence, discourages savings as a means to avoid such taxes would be to simply spend all earned money at once.
“Unite should recognise the enormous contribution the wealthiest make to society instead of attempting to leech further off those who already prop up the public sector. Campaigners ought to recognise that millionaires who believe they have a duty to pay more tax already can. Voluntary payments can be made via direct bank transfer to HM Treasury. The fact that this amount each year is minimal suggests that maybe the tax rate is already a tad high.”
You can read Matthew’s full piece here.
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