The (right wing) press has been having some fun speculating what a Labour Govt, under proforma Chancellor John MacDonald, might do under its tax and spent vision spelt out in the 2017 manifesto. Basically, they are talking about a 45% tax rate for those earning over 80k and 50% from 123k up. Corporation tax up to 26% from its current low of 19%. More Sweden than Venezuela.
But what if some more radical ideas come through in order to fund (massive) spending on education and the NHS? The current favourite is a “wealth tax” which is well established in countries such as France and Norway. Tax wonks favour this as income is relatively easy to fudge (well, defer anyway) and real inequalities exist in wealth. The real shocker is the suggestion that all savings and investments in excess of 200k should be subject to a one-off 20% wealth raid. That amounts to an unprecedented assault on property rights, the very concept that helped to create wealth in the first place. Who said tax was boring?