A Wealth Tax For The UK? No Thanks!

Britain is in deep trouble, primarily due to the insane policies of the Starmer Government. Specifically, there is a funding crisis. And the proposed solution? A wealth tax.

Here we go again. Let’s look at this rationally.

What do the wealthy do with their money? The spend it, they invest it, they donate it. If they simply hide it under the mattress, inflation will eat away at it. When they spend, they put money into the economy, which provides livelihoods for the less fortunate. When they invest it, they do the same. Much of this wealth goes into managed funds, which are often managed poorly, but many wealthy people invest directly in businesses or start businesses. This latter can be risky, as anyone who has started or attempted to start even a small business will testify. Many businesses never get off the ground or fold within a year or two, but the mere act of starting a business provides livelihoods for the rest of us.

Then there is the donation side. Many wealthy people including most of the very wealthy, donate money to charities, to favoured causes, or simply participate in fund-raising events. There are though, those in government and elsewhere who think they know better than the wealthy how to spend this money. We’ve seen how this plays out.

Leaving that aside, big money isn’t like a battered wife who will stay with her abusive husband, even defending him. Money goes where it is well treated; the proof of this pudding is in the latest figures for emigration. Here is a report from January and another more recent of the wealthy fleeing the UK in droves. Don’t believe any report to the contrary, that’s propaganda.

France has recently levied a one-off tax on the wealthy, and now, surprise, surprise, there is talk of making it permanent.

In the UK, the top one percent already pay around thirty percent of income tax; there are similar figures for the US. So if a wealth tax isn’t the answer, what is?

One massive problem, an enormous drain on the economy, is the manufactured migrant crisis. Britain is being flooded with illegal immigrants who cross the English Channel in small boats and increasingly not such small boats. These men - and they are overwhelmingly men - are a massive drain on the economy although clearly some people are getting rich off them. For reasons that need not be discussed here, the British Government has no intention or even a desire to stop this influx.

Leaving that aside and the insane drive to Net Zero, there is a financial crisis due to the shortage of money, which is caused by its high cost. Cheap money is the life blood of the economy. If there is a shortage of money, print the damn stuff! This can be done electronically at no cost, and debt-free.

The usual response to this is that it will cause inflation, followed by fear-mongering about Weimar Germany, liberated Zimbabwe and of late, Venezuela. Yes, the economy will be inflated, but when the choice is between inflated money and no money at all, it’s Hobson’s choice. Another option is debt-cancellation. In 2015, the British Government announced the repayment of debts dating back to the 1700s. Doubtless, there are other bond issues which are still accruing payments from the Exchequer, which begs the question why? There is absolutely no need for the heirs of long dead investors to be paid anything out of the public purse.