Sunday, 23 September 2012

Wealth Tax Coming to Britain


The LibDems Call for a Wealth Tax
Britain has never had a wealth tax, apart from the Window Tax of 1696, which was based on the assumption that only wealthy people could afford large houses with numerous windows.
However, from their 2012 party conference in Brighton, the Liberal Democrats have announced plans for a Wealth Tax on houses worth at least £1 million. According to Sky News on 23 September 2012, the Deputy Prime Minister and leader of the Liberal Democrats, Nick Clegg, stated: “the vast majority of people in this country won't find it acceptable if further fiscal austerity was implemented on the backs of the poor”.

Wealth Tax as a Condition for Further Spending Cuts
The LibDems have made it clear they will not support any further spending cuts proposed by the Conservative Coalition partners unless some form of Wealth Tax is agreed upon. But what would happen if the Tories refuse? This would imply that, in order to push through a new round of cuts in budget expenditure, the Conservatives would need to bring to an end the Coalition with the Liberal Democrats, or await the next General Election and attempt to go it alone.

But with the Liberal Democrats losing public support in Britain, many see it as a forgone conclusion that this party will rather choose to hold a firm stance and confront the Conservatives at the ballot box, than give up their attempt to introduce fairer laws in Britain concerning the distribution of wealth. So the only safe way forward for the Coalition is to agree on the introduction of a tax on accumulated private assets.

The Conservative Party and Wealth Tax
Supporters of the Conservative party are generally opposed to any form of tax on accumulated wealth, no matter how rich a person may be. To push through Parliament some form of taxation on accumulated assets would constitute a precedent in British history, something completely new, possibly opening the door to a social society where limits are fixed on how far an individual can go in storing private assets.

Such a law could be built upon, increasing the tax percentage on higher amounts of personal wealth, including financial securities such as gilts and bonds, as well as shares. It could see Britain's aristocrats being taxed on their mansions, palaces and estates. All things adverse to Tory philosophy could be achieved once a Wealth Tax were introduced, as Conservative way of thinking in Britain is to preserve the wealth of the rich while inflicting spending cuts on the masses.

And yet, in order to appear successful in the eyes of the public opinion, the Coalition Government needs to be reciprocal. It must agree on at least some major principles of each of the parties comprising the Coalition. So perhaps we will soon see a change of heart in the Conservative way of thinking, an acceptance that, in times of harsh austerity, the Country must come first, and that individual hoarding of wealth needs to be addressed. 

Written by D. Alexander

See also: David Cameron to clamp down on company directors:  

British Government suggests prison for reckless bankers:

Austerity destroying Britain:


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