Tax and Fiscal Policy

Sir Keir’s proposed wealth tax will not fund health and social care in the long-term



IEA research referenced in The Spectator

Julian Jessop comments for the Express

Julian Jessop, IEA Economics Fellow, has commented on Labour leader, Sir Keir Starmer’s proposal to levy greater taxes on wealth to fund health and social care.

Julian argues that this plan is short-sighted and ultimately unfair.

“Wealth taxes are not really a long term solution. A one-off wealth tax might fix the short term problems, for example the backlog in the health system.”

“But there are a lot of problems with wealth taxes, for example they are sometimes actually quite hard to collect. It’s much easier to tax income than wealth.”

“They can quite often be unfair as well, because they are retrospective and can be double or even triple taxations, if you have got wealth you have typically built that up over many years and paid tax on the income you have used to gain that wealth.”

Read the full article here.