A report published earlier today, has suggested a 5% one-off tax on housing, pension and business assets over £500,000 to help the Treasury pay back most of the £280 billion deficit as a result of the coronavirus pandemic.
The report proposes individuals pay the tax at a rate of 1% a year for 5 years.
Input from HMRC, the Treasury and the Wealth Tax Commission plus research from more than 30 papers agreed that assets over £500,00 taxed at 5% would raise £260 billion. The Government would need to add 9p to the basic rate of income tax or raise VAT by 6p to achieve the same result.
The wealth tax would not include mortgages and other debts and jointly owned assests such as a family home the value would be split, meaning a couple would need to hold a net assets of £1 million before the extra tax would be paid.
This is a tough one, whilst it would wipe out debt in one sweep, it will infuriate not just the super rich but many hardworking people who have worked hard to save. All debt should be paid off and shared by all those that have benefitted.