Scottish ministers are poised to ask the UK government for the power to introduce wealth taxes after the next Holyrood election amid growing pressure to balance the books in the coming years.
by backupJM
Scottish ministers are poised to ask the UK government for the power to introduce wealth taxes after the next Holyrood election amid growing pressure to balance the books in the coming years.
by backupJM
10 comments
This is not something that would be implemented by 2026, but rather ministers are to ask the UK government to devolve the power to create a national wealth tax — but if that happens, the implementation of that would not be for several years. Tried my best in adding context to the headline!
>In response to the financial pressures on the horizon, Ms Robison has now raised the prospect of asking the UK government to grant devolved powers to introduce a wealth tax along with other potential options such as a carbon land tax.
>A wealth tax would be applied to someone’s net worth or assets.
>But Ms Robison has insisted that introducing any form of wealth tax “will not happen in the short term and will not raise revenue in this session of parliament”.
…
>If the UK government was to turn down an appeal for a wider wealth tax, Scottish ministers could introduce a tax on wealth, provided it is implemented as part of the local tax system. But Ms Robison has signalled that no overhaul of the long-delayed council tax reforms will take place until after the Holyrood election.
>But a separate bid for a wealth tax has been launched by a Scottish Labour MP who has called on his party to adopt the policy, arguing it could have helped avoid the issues plaguing Chancellor Rachel Reeves in the past week.
At their conference next month, a ScotLab MP will also table a bid for their party to support a wealth tax. But Sarwar is opposed- so probably unlikely it goes ahead.
In a lot of the criticism around recent income tax rises, people have (rightly) said that wealth/wealthy should be targeted instead of those on PAYE slips. So, I’m curious if this would have broad support in parliament and polling. (Though personally I think reformation of CT would be a better place to start)
There really is not very much wealth to tax in Scotland at all.
I’m all for wealth taxes – in fact I like inheritance tax as a good way of doing it but the public don’t, and they’re easy to avoid.
The people that need taxing are the internationally wealthy and the only way that happens is with international cooperation.
It’s nigh on impossible to see how any form of wealth tax, beyond property taxes, is workable within the UK single market.
Most people’s largest wealth stores are in their primary residence and pension savings. I don’t think those are likely to be the most attractive sources of additional tax revenue.
So if instead you aim to target the other assets of particularly wealthy individuals, you are creating another incentive for people to redomicile elsewhere in the UK, on top of higher income taxes.
All of which is assuming you can even get UK Gov to agree to this.
Tbh, feels much more like another effort to distract from the obvious conclusion that to fund services properly taxes need to go up on a broader base, ideally with voters’ consent, which won’t happen if politicians continue pretending paying for everything is someone else’s problem.
Ask for an extremely unwieldy tax implement to pay for their unfunded promises.
Get denied.
Back on the Blame Westminster train.
Och, let us tak a guid look at this notion o’ a progressive wealth tax tae fund the endless thirst o’ excessive government spendin’. It micht seem a braw idea tae some, aye, but like a cow wi’ twa legs, it disna stand firm upon closer inspection.
First, ye maun ken that such a tax, aimed at wringin’ the wealth fae the well-aff, carries wi’ it the danger o’ drivin’ awa those wi’ the verra wealth ye seek tae tap. The rich, nae daft, hae ways tae shield their siller or flee tae climes less thirsty for their coin. Auld Scotland hersel kens weel the loss o’ clever hands and minds tae far-off lands where the burdens be lighter.
Secondly, this notion reeks o’ short-termism, for it sooks the lifeblood fae enterprise. If a man kens that his gains shall be clapped in the maw o’ the taxman afore he can reinvest or build, whaur is the incentive tae create ocht at a’? Such a policy micht line the coffers in the noo, but at the cost o’ innovation and future prosperity. Ye canna shear a sheep every day, else ye’ll hae nae fleece left.
And what o’ the government hersel? When she gets a taste o’ new revenue, it often gies her nae reason tae tighten her ain belt. Excessive spendin’, like a drunkard at the tavern, kens nae end till the purse is empty. A progressive wealth tax, rather than solving the root cause, micht well encourage mair wanton waste and folly.
Lastly, there’s the matter o’ fairness. While some micht blether that the wealthy can afford tae pay mair, wha decides whit is “mair”? Is it fair tae punish success while those less industrious skate by unscathed? Such a tax risks stokin’ the fires o’ division, pitten folk against ane anither like clans in a feud.
In conclusion, tae levy a progressive wealth tax tae fund an already bloated government is tae rob Peter tae pay Paul, while tellin’ Peter he’s tae blame for a’ society’s ills. Scotland hersel has aye thrived on thrift, industry, and fair play, nae on the false promise o’ takin’ frae some tae feed the unchecked appetite o’ others. Let us mind oor lessons o’ auld and tread wi’ caution, lest we find oorsels the poorer for it.
Inheritance Tax is unwieldy because it doesn’t target the genuinely wealthy who are engaged in Tax Avoidance schemes. For example Mum and Dad bought a house in the 1960s and pass it on and hard working children get whacked with Inheritance Tax because of the increase in property taxes. This isn’t a wealth tax it’s a blunt instrument to pacify the masses.
We had a Prime Minister involved in Non Domicile tax avoidance who was a Billionaire for goodness sake. The wealthy are always going to screw Governments over unless there is a Global effort to tackle this problem. As Biden said we’re moving into an era of being ruled by Oligarchs and the SNP sure as shit aren’t going to solve the problem.
There is if government has the will!
Unfortunately Westminster’s failure to stop lobbying and tax loopholes is the way we live!
Would the snp maybe try to address growth in the country! Instead of generating income
Through taxation maybe try to actually grow our economy, attract investment, support people’s ambitions to have a good career without being taxed into oblivion. 42% tax at £43k given inflation in recent years is a disgusting level of tax at such a low threshold.
And guess what, the super rich will have accountants and lawyers move money offshore and have them in different schemes to avoid all taxes, and the middle will fully shoulder the entire new tax burden again. You are 100% going to see high earners move out of Scotland at this rate.
“In unrelated news Estate agents in R/UK have noted an unexpected rise in the numbers of people with scottish accents looking for new homes”.
Do they have any plans that don’t involve taxing people?
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