Fixing the UK's Inequality 🇬🇧

Would you support this type of wealth tax?

[nevillewhite]

I think the German system of inheritance tax is fairer, whereby the beneficiaries are taxed rather than the estate. Each beneficiary has their own tax threshold; a child receives the first €400, 000 tax free, for example. Twice that if two parents die.
One advantage of such a system is that it takes better care of families with multiple children since they each get the tax allowance. Wealthy families with few children pay more tax than less wealthy families with more children.
If I understand correctly, the Duke of Westminster didn’t pay any inheritance tax on his £9bn.

[philipnorthfield]

Or could it be that the wealthiest 1% own more than the bottom 70% of the UKs assets. Thats a pretty big wealth gap. A wealth tax should probably be just that, a tax on the wealthiest, that doesn't mean take everything they have it means that those with the broadest shoulders bare the greatest burden to help those with the least in society.

[andytc]

Perhaps there's more than two groups! I'd suggest 5 to get us going:
1. Struggle to afford even the most basic rent
2. Renting but can't put enough away to get a deposit
3. On the ladder but paying approximately 50% of income on interest payments alone
4. Nearing the end of mortgage or mortgage free
5. Owning multiple assets outright beyond what is needed for oneself and ones dependents.

[sonicwingnut]

I think the problem is that with house prices being hyper-inflated and a complete lack of social housing provision for young people, many young people will only ever actually gain a home (or significant funds for a deposit) via inheritance. I myself am a 41yr old working professional on above average income for my region, and still had to live with partner's parents for a year in order to afford a 3-bed semi in one of the cheapest large towns in the north east of England. And that was the big problem - having enough disposable income even on a decent wage in order to save for a deposit - 5% deposits aren't the answer - as we saw recently that's a route to negative equity when income rates are corrected.
Really the glaringly obvious solution is to invest in proper social housing but no one seems to want to touch that. It's stupid because a good provision of council houses for working professionals would be a good investment of public funds (fiscal multipliers are high for social housing investment long-term), provide a base-line of rental provision that would help regulate the out-of-control private market, and give young people the opportunity to actually have enough disposable income to save for a deposit on their own home. Right now there's not enough social housing to go to anyone but the most vulnerable in society so it's seen as just an expense, but build enough so working people can live in them too and it becomes a valuable public asset.
The tories won't do that because they see council houses as breeding grounds for Labour voters, and Labour won't do it because they're too scared of upsetting tory voters.

[steventhorpe]

I was stunned when Rory said this, & so disappointed. 60% home ownership does not represent affluence. As somebody said to me recently I’m assert rich cash poor. Why can’t HMG & Local Government learn to live within their means & stop bankrupting us with debt & high taxes. I can’t see the ‘elite’ offloading their homes to the state when they die, it will only be middle England that will suffer this injustice.

[DJC]

These policies will only lead to those in the middle getting squeezed. The actual rich in this country will be able to pay additional taxes and keep all their property.

[mmare]

Rory, you are a bit delusional 😢. The difference is made by 10% who own most of the assets and 60% who are the low paid workers, the rest up to 100% are the ones who gained from both sides.

[sleepinggiantasa]

So the result of this idea (unsurprisingly coming from a former tory) will impact those in the lower middle and middle class disportunately, while leaving the upper class completely unaffected. Most middle class kids will have to rely on inheritance of there parents house to afford a deposit of there own, brining home ownership down, and giving more power to private landlords who will eat up even more property as children need to sell their parents house to pay the tax bill.

[TheYorkshirePhotographer]

Rory, I’d encourage you to interview Gary Stevenson to hear his views on taxing wealth.

Most people don’t have any grasp of what wealthy actually means. It’s not the middle class with detached homes and new cars, it’s the multi-millionaires, the Rishi Sunaks… not pointing this out makes the middle class nervous about the idea of taxing wealth, when this is the only way they’ll prevent the super wealthy from buying their assets.

It feels more and more like British people resent financial success in this country because another’s success is portrayed as the reason you are poor.

[domroberts]

I disagree. A family home should not be taxed. People work their entire lives to pass something onto their children and grandchildren. Whether upper class, middle class or working class. Taxing the next generations inheritance is the wrong approach. Tax large corporations, banks, dividends, increase employer and employee NI contributions. Decrease VAT on UK products to encourage growth particularly small businesses.
Taxing working people is wrong. We didn’t mess this country up. Taxing the corporations and banks etc… who have bled this country’s people dry are responsible and should be the ones to pick up the slack

[carnage]

The children can't afford to buy until their parents pass. Rory is ignoring that and basically saying, " Screw what your parents did to earn this for you, it's ours"

[rowana]

Inheritance tax is theft, I have already paid income tax on the money I used to buy that house, hands off.

[chattyman]

The wealth tax should be on houses valued up in the millions if it's aggressive or on investment properties; otherwise, what you're basically saying is the hardworking middle classes, who have worked all their lives to build something for their kids, are having to pay for the budgeting failures of the government. And that will be a quick one-term government for Labour. Statistically, the people who would benefit the most don't vote; the middle classes all vote. Rory is such a closeted socialist; why on earth was he an officer-class Tory! I'd have him in the Labour Party in a second; he's great, big fan!

[leonardhughes]

Who is this guy talking about taxing away someone's home when they die?
People work hard to own their own home, why shouldn't their children benefit from their parents prudent money management?
No one wastes money like the government. Giving them a windfall while impoverishing homeowner's heirs is disgusting.
Governments DON'T have an income problem, they have a spending problem.

[marktynan]

Disgraceful… work hard, pay tax and then get taxed again.. these people are evil it’s as simple as that

[Handleinthewind]

Taxing home ownership in addition to the already prohibitive rates of SDLT in some parts of the country will only continue to worsen the housing crisis. Housing is not a privilege, it is a basic societal necessity - particularly in a low wages, low job stability economy. Property taxes are usually levied either gradually during the course of ownership or at the time of a property transaction but not both.

[WhippetNose]

What a disgusting lie.

I have mortgage on a small house that takes up 50% of my take home pay, so he wants to class me as being further away in wealth terms from someone who doesn't have a mortgage and spends 50% of their pay on rent than I am from multi-millionaires, who own several (very large) houses without needing a mortgage on them (e.g. him).

So out of touch with reality it's unbelievable.

[erict.watson]

Those who own houses or those who own a house?

[jackdoesengineering]

Considering that they are wasting 2 billion on eu research programs and £50 million on startups with poor concepts. I would say the solution is not more tax because the money they do have they waste on rubbish

[sandworm]

Lol, 10% owns half the wealth. Dont act like its 60 - 40