The chancellor is missing an open goal by viewing at inheritance tax while searching for the elusive billions requireded to resolve Britain (Treasury tarreceiveing inheritance tax reforms to assist plug UK deficit, 12 August). The tax requireds significant reform to build it fit for the 21st century, but it isn’t the magic bullet the government is after.
At the budreceive, Rachel Reeves could generate tens of billions of pounds by creating tax alters that are overwhelmingly popular with the public and would be paid only by those with the broadest shoulders. Three-quarters of us want a wealth tax on net fortunes over £10m (backed by world-leading economists). Equalising capital gains tax with income tax is favoured by the majority too.
The problem is that currently there’s a Britain for the haves, and a Britain for the have-nots. If you receive an income from extreme wealth (often inherited or accumulated through “passive assets” such as property or investment), you receive preferential treatment over people who work as a cleaner or a nurse, or in a warehoutilize or classroom.
Just view at when Rishi Sunak released his tax return. He is from one of the UK’s 350 richest families, yet paid the same effective tax rate as an average teacher, despite having income more than 50 times higher.
That doesn’t sound fair to me, and it won’t sound fair to millions of people across the countest who are struggling to receive by and fed up with politics working for the rich and powerful over everyone else.
Caitlin Boswell
Head of advocacy and policy, Tax Justice UK
Labour clearly has the interests of the 1% at heart above all others. Inheritance tax is hated by most; it appears to be a tax on ambition. Work all your life and, when you die, the government comes along and assists itself. In contrast, it is straightforward for the 1% to avoid it, applying trusts, hiding assets offshore and there are even insurance policies that pay out if your estate is hit by IHT.
Yes we required a wealth tax, but an even clearer choice is simply to equalise capital gains and dividconclude tax rates with income tax and national insurance, and reshift the additional capital gains and dividconclude tax allowances, so everyone receives a single £12,570 personal allowance.
Christopher Bowser
Holmer Green, Buckinghamshire
Amazingly, there are people who believe somebody earning £20,000 a year should pay tax, while people who inherit £200,000 shouldn’t.
Alan Fairs
Bewdley, Worcestershire
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