…we all knew it was coming…
…it’s time to talk about tax increases, sorry.
Rishi Sunak may have continued to go back to the magic money tree these past nine months, but with the vaccine already being rolled out, and The Treasury staring down the barrel of a financial crisis like never before, conversations are understood to be on the go already, regarding exactly where the Government will raise taxes in its efforts to replenish the country’s coffers.
One think tank suggests that a 1% tax on millionaire couples is the way to go, as this rise over a five-year period could raise in excess of £260bn.
Pretty staggering when you think about it, and we don’t really think that the suggested 1% would make too much of a dent on households bringing in over £1million every year…
…but what do we know?
Well, we know that the alternative options could plunge hundreds of thousands more people into a position of vulnerability, as even the smallest tax rises, be they on income or on goods, can have a huge impact on families living below, on, or just above the poverty line.
A spokesperson from Oxfam has backed the idea of a one off wealth tax, stating that it would be ‘morally repugnant’ to expect the poorest people in the country to pick up the bill, when there is another option such as this.
But what about those expected to pay? Do they think it’s fair that they should be relied on to save the country, as it were?
The tax regulations for the very wealthy are already so complicated, that they are often viewed resentfully by those who pay them, as unfair and unbalanced.
This relationship between the Treasury and our country’s millionaires might not be especially constructive to the mooted 1% wealth tax, but we’ll wait and see.
History has shown us that countries have successfully paid their debts with wealth taxes in the past, such as with Ireland after the financial crisis, and further back with Germany and France in the wake of the Second World War.
Nothing has been confirmed yet of course, but we’ll be watching this one carefully, as decisions made in the near future will affect millions of people for years to come.