Clegg targets higher wealth taxes
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Deputy prime minister Nick Clegg is targeting a greater tax contribution from the wealthy as part of the Liberal Democrats’ efforts to tackle wealth inequality.
Speaking in Westminster to think tank Demos yesterday Clegg (pictured) set out his vision for an “open society” which provides for social mobility and fair distribution of wealth and property.
Clegg said: “Wealth inequality is very much greater than income inequality and widening. The bottom third of households hold just three per cent of the nation’s wealth. The top third hold three-quarters of it. This inequality of wealth then cascades down the generations, potentially widening the opportunity gap.”
Clegg argued the liberal approach to tax was to distinguish between “earned income and unearned wealth”.
He said: “That is why we have put up capital gains tax while cutting income tax for ordinary working families. And of course, I would like to go further in pursuit of this fiscal liberalism. Lower taxes on work and effort, a greater contribution from the wealthy: an open society approach to tax.”
A spokesman for the Lib Dems says while no specific tax policy is in place at this stage, Clegg’s speech sets out the direction of travel. He says the Lib Dem focus will be on initiatives such as raising the income tax threshold, with tax increases directed at the wealthy through reforms such as mansion taxes and changes to CGT.
Clegg also hit out at the power base within the City and criticised the UK economy for being too reliant on London and the South East, and “too in thrall to financial services”.
He said the Government will continue to work to curb bankers’ excessive pay and bonuses.
He added: “On the eve of bonus season, let no-one be in any doubt about our determination to use our clout as the major shareholder in these banks to block any irresponsible payments, or any rewards for failure.”
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Readers' comments (2)
Anonymous | 20 Dec 2011 11:46 am
The true colours of Clegg and his little gang keep poping up. Tax the hard working wealth creators to subsidise the 9-5 brigade. Keep it up and the Liberals like Labour will drive the private sector abroad, and we can end up with the bloated public sector which is to blame for a lot of our economic woes. Tax and spend, tax and spend. When will anyone learn
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Greg Heath | 20 Dec 2011 12:11 pm
The Lib Dems don't get it at all. You don't raise the poor up by bringing the wealthy down. It just never happens. Surely it makes more sense to allow the wealth creators freedom to create, not tax them into the ground. The 50% tax rate is already damaging the UK economy (we have several clients in this position who are sat on large amounts company cash but will not draw it/use it) and stupid soundbites like this don't help. About time we had some political & civil servant heavyweights who actually had a grasp of economics & commercial reality.
A start would be to listen to Digby Jones and relax the tax on new jobs (employer NI).
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