Deputy prime minister Nick Clegg has vowed to keep fighting for a wealth tax as senior Liberal Democrats urge the party to seize the moment at its party conference in Brighton.
A LibDem policy paper published ahead of the conference this week, titled Tackling Inequality at its Roots,says the party is looking to shift the national tax burden off earned income and onto unearned income and wealth.
The paper highlights France and America as examples of countries which have successfully introduced a levy of up to 0.5 per cent per annum on “wealthy” people’s net assets.
It says: “We will continue to seek ways to re-balance taxation between taxing income and taxing wealth, including when it is inherited.”
The paper also advocates the introduction of a mansion tax on residential properties worth over £2m.
Speaking on the BBC’s Andrew Marr Show on Sunday, Clegg (pictured) signalled he would not sanction any more cuts until the party’s wealth tax proposals have been implemented.
He said: “The vast majority of people in this country would find it wholly unacceptable if further fiscal austerity was basically implemented on the backs of the poor.”
Technical Connection joint managing director Tony Wickenden says the LibDems could press for an ‘accessions tax’ alongside the 0.5 per cent annual levy on net assets outlined in the policy paper.
He says the accessions tax would replace inheritance tax and would see the tax liability fall on the person receiving the income rather than the estate of the deceased.
Speaking at a fringe event at the party conference on Sunday, Treasury spokesman Lord Matthew Oakeshott said: “We are in a position to make a serious start towards wealth taxation.”