Alan Rusbridger, the former editor of the Guardian and now the editor of Prospect magazine, has made the first editorial comment on the Taxing Wealth Report 2024, saying:
The veteran tax campaigner Richard Murphy today publishes a report, the “Taxing Wealth Report 2024”, which claims to show that by making up to 30 relatively simple changes to existing UK taxes a new government could raise up to £90bn—entirely from those who are well-off or straightforwardly wealthy.
His first suggestion is changing capital gains to the same rate as income tax. That, says Murphy, would raise £12bn of extra tax per annum: enough to help quite a few struggling hospitals, buy our troops more ammo or fund a proper water regulator.
Another £12bn, he calculates, could be raised by investing £1bn in HMRC, which would enable it to track down the estimated 30 per cent of taxes that currently go unpaid.
Is he right? I'm no tax expert, but at least he's starting a discussion which the public may well be ready for.
Am I right? All estimates are, of course, open to debate and I do not pretend otherwise. But I think I am right about the fact that the public is open to this debate.
I am not alone in thinking so. A Labour source told me this morning:
The leadership wants growth (never mention how that will shared) but does not want to borrow, do QE or rearrange taxes. I think if Labour comes to power, public goodwill will evaporate quickly when people fail to notice any material change. That will be the time for a push for rebalancing of taxes.
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I had a begging letter from Labour this morning asking for money as their online donations are falling off a cliff – have they really no idea why that might be!!?
I responded, unusually, as I was so angry, explaining that they no longer represented anything I believe in……I suggested they read your blog and included a link.
No idea if those replies ever get read…
But congratulations on such an important piece of work!
Thank you
Good one
Me, too.
Likewise.
Same here.
To be honest I just think Keir Starmer is yet another two-faced politician low in moral outlook like the Tories and constantly casting around for weasel words to justify his utterances. We must have private sector growth, private sector growth, private sector growth … before we can do anything as a government is all his governing economic strategy amounts to! Clearly dumb if you have any clear understanding of how the UK ‘s monetary system works and the role taxation plays in it but it very much suits the wealthy. The mainstream media even the Guardian plays along with this biased nonsense in the way they selectively manipulate their content to avoid challenging this type of politician.
Prepare for howls of anguish and not a little hypocrisy (and ignorance) from the usual suspects. “Anas Sarwar [Labour Leader in Scotland] previously campaigned to have a Scottish income tax rate of 50% for earnings over £100,000, his party has gone on the offensive against less drastic tax changes brought in by the SNP”, while supporting no cap on Bankers’ Bonuses and the 2 child cap.
As someone said, “what a sorry state (politics) is in”.
https://www.thenational.scot/news/24235230.labour-slammed-attacking-progressive-scottish-tax-changes/
Sadly it seems Labour are like the. Tories in the pocket of those who fund them. And contrary to what a lot of people believe this is largely big businesses and those with money, not the unions. Not surprisingly these groups will not support a fairer tax system that they stand to lose from.
The current tax level is at an all time high and you think there is scope for more taxes?
Of course people can easily be conned into thinking that someone else can pay more and there will be no adverse impact, but it’s not the case.
Do any of your proposed taxes involve you paying more tax? What about your wife?
I would definitely pay more tax. My wife is mainly retired . She is most definitely not in the target audience for this. Do you think those on average pensions should pay more?
Did you actually bother reading the summary of Richard’s report before you commented? Or is it the case that you’re simply repeating the arguments of some right-wing rag owned by a multi-millionaire? Leaving aside how much tax is raised in the UK it’s blindingly obvious that the UK taxation system is unjust but you have nothing to say on this matter!
The Taxing Wealth report is much more about recalibrating the tax system to remove anomalies and adjust the tax burden equitably so that the wealthiest rather than the weakest carry the heaviest weight.
Surely rebalancing the system is desirable?
An extra £90bn without major tax rises, and with future potential for reducing the highest marginal rates for the worst off, is hardly to be unwelcome.
As for tax being at an all time high – perhaps a contrast with most of Europe and especially most successful social democracies – where tax as a % of GDP is considerably higher than the UK, but so are all the indices of welfare, happiness, productivity, etc., might be a useful comparison.
There is no self determining ‘right’ level of taxation, just as there is no absolute for most economic indices – it all depends on equitable distribution and how government then balances the economy.
The presumption, akin to the myth of homo economicus, that we all only act out of self interest, is both misplaced and ungenerous.
I think the TWR very clearly suggests that redistribution of taxes is possible
If you do a little searching you’ll find that the UK tax burden isn’t particularly high internationally and in fact is below many other European countries. Nor is it at an “all time high”.
https://obr.uk/box/the-uks-tax-burden-in-historical-and-international-context/
https://ifs.org.uk/taxlab/taxlab-key-questions/how-do-uk-tax-revenues-compare-internationally
Agreed
The current level of public services is at an all time low due to under-funding. This is resulting in avoidable deaths and suffering. Do you think there is scope to not increase taxes?
I sense a return of the trolling sportsmen… Pat Richards played rugby league for Wigan in the mid 2000s!
Really? They get me there
Only on this website is ‘having a different opinion’ considered to be trolling. It’s a shame you can’t look beyond the world outside of your echo chamber, you might learn something.
That’s quite funny really
Labour certainly does not allow differing opinions and the government has passed law banning it
Here debate is encouraged
It takes a person incapacitated by dogma not to notice that
How do you get around the fact that all of the people who have the power to make the taxation changes, whatever those changes may be, have all, either already been made wealthy & powerful by the currently existing systems, or are currently working on it by using their political status by selling our labour & their services to the plutocrats to that specific end?
There was a time when there were some politicians whose philosophy involved them helping the people, for the general good. However, since at least the early 1980’s all electable parties either espouse openly Neoliberalism, or like the Australian Greens, mutely accept it for fear of ridicule by the regime & their press. No socialist individuals can find an effective home in such parties, & any parties which might attempt to, are met with the full combined numerical might of the Neoliberal Duopoly or Multiopoly combined with the international press in their particular nation.
The oligarchs, plutocrats, billionaires have already purchased the rule of the nation states by purchasing the politicians & their parties, & they already own the international press. Between them they just pretend democracy by playing a Punch & Judy pantomime in which politicians of both or all of their Neoliberal parties slag off at each other like World Championship Wrestlers & then go off to the Parliamentary Bar for a few sociable publicly subsidised drinks.
Whichever supposed party wins what may be of a fully free & fair election, or whatever pretence thereof as passes as democracy in their nation, the government so elected are all owned, obligated to those who pay them the most
& those who pay them the most, do not want any change in the relationship by which they own the only people who could possibly, inconceivably, want to change the system.
So, who is going to institute these tax changes?
I have not given in to autocracy
It seems you have
Which of us is right?
Whether or not I have given up is irrelevant really, my question to you is :
“Who is going to implement your proposed changes?”
Thanks, first of all, for confirming you are trolling. The style of answer strongly suggests that. You are indifferent to the actual issue.
Second, I already provided the answer. Democrats will. Those with neoliberal, autocratic tendency will not. Given that neoliberalism has failed and its replacement is dependent on new policy thinking that is your answer.
Who, indeed, is going to implement these tax changes? I suggest we can all play our part in their eventual implementation by spreading the word and putting pressure on politicians. Responding to overwhelming power by giving up is not an option.
Agreed
Mr Relph in answer to your question “who is going to institute these tax changes” – simple – Independent MPs – who I hope will form a sizeable contingent in the next parliament – they, unlike the Tories or LINO will not be the tool of the oligarchs etc. Indeed, if the changes are made I predict a suddent flight of these unpleasant people to more congenial climes – & thus good riddance to bad rubbish.
I am active in helping select people to stand as Indys and encouraging people to support them. The UK needs to ditch the has-beens/never-weres that sit in the HoC now.
Reading both Ian Dunt’s excellent book on Westminster and then Rory Stewart, I fear that the problem is more the party system than the individual MPs. The system picks people who will behave like cannon fodder with rare and honourable exceptions. The new podcast Electoral Disfunction is also interesting with Jess Phillips and Ruth Davidson, both of whom have bucked against their parties in different ways and recognise the failings of the system as it is.
Good luck with working to get more independents in – thats a tough path to follow. Its going to take PR to really change things.
Good to see. Having said that, the idea that the ‘public’ (who is that, by the way – those who consume the media or those who produce it?) might possibly ‘not be ready’ for a debate about whether we could raise huge sums with little or no pain to the majority, when most aspects of the country are on their knees … kind of beggars belief really, doesn’t it? Not sure if it reflects Thatcherite/neoliberal mind control, the vested interests of those in the media who make decisions, or both.
The more light that gets shone on issues such as tax the better.
https://www.theguardian.com/business/2024/apr/05/starbucks-paid-7-point-2m-in-uk-corporation-tax-despite-gross-profit-of-149m
It is long overdue to seriously review how Britain is governed as evidenced by it’s fossilisation and subsequent real world consequences.
‘the cumulative effects of decline are now blatant, yet there is still widespread denial among those who govern’
https://www.palladiummag.com/2023/04/27/britain-is-dead/
Its a good sign that Rushbridger is taking notice.
A fairer tax system means some people’s taxes will go up and some will go down. You can’t address the massive unfairness of the current system without increasing taxes for some people. If you genuinely intend not to “raise taxes” you will not begin to address unfairness. Leaving those with at the wrong end of the system worse off than ever.
I cannot agree about using the money to purchase arms. In my book that would be a very distant last.
But democracy prevails, IMO
Democracy in the modern world is on a very shoogly peg. Its cradle in Athens (pace D. Graeber) was limited to free males. But usually men could hear and speak opinion on policy.
We in the UK, well, some of us, are asked to plunge our hands into a sack of weasels and be subject to the bare majority of those still with their teeth in us when we withdraw. Once every five years. Thanks, Osborne. It was 4. What we don`t have is rational debate in any form. TV has been suborned by the right-wing owners. Likewise the press. So I`d like to say that democracy is more subtle than the fall of a die. We pride ourselves that we are the pinnacle of civilisation, and every day we prove that we are not. We need logicians like Richard to promote fairness and cooperation in every sphere, with full debate and consent, otherwise, it`s not going to end well.
Whats with ‘veteran’ tax campaigner?! You’ll be ‘vintage’ next.
Though a particularly good vintage…
In the sense that John Christensen and I were probably the first tax campaigners I guess veteran is right…..