Clegg’s emergency wealth tax slammed as a "dead end"

August 29, 2012 12:20 PM

Responding to Deputy Prime Minister Nick Clegg’s call for an emergency wealth tax in this morning’s Guardian, Matthew Sinclair, Chief Executive of the TaxPayers’ Alliance, said:
“Taxpayers can only hope that Nick Clegg realises proposals for a wealth tax are a dead end before it is too late, as Denis Healey did when he tried the same thing in the 1970s. It would be a practical nightmare to introduce and a huge danger to Britain's already struggling economy. Many countries which have tried wealth taxes have found they produce unfair results and capital flight on an enormous scale. In recent years a number of those countries have abolished their wealth taxes. It would be a disaster if Britain went in the other direction.

“The Government should instead work to reform and simplify Britain's existing taxes, abolishing loopholes to ensure that everyone pays their fair share. More than that, the Government needs to get spending under control so that in the longer term the tax burden can be eased for everyone.

“It is somewhat ironic that Mr Clegg uses this same Guardian interview to suggest that David Laws will soon be returning to the Government: after all, the Yeovil MP has articulated better than most the need for lower tax rates, tax reform and lower public spending. He was recognised as the TPA’s Pin-Up of the Month in June for that reason.

“With excessive taxes already choking off the economy and placing an excessive burden on families and businesses alike, the last thing the Coalition should be considering is new taxes. Politicians have spent too much, not taxed too little.”

Click here to see David Laws’ award for Pin-Up of the Month for June 2012. He received the award after writing an essay published by the Institute of Economic Affairs which is available to download here and for remarks he made in a Sunday Telegraph interview.

Our Founder Matthew Elliott has previously blogged about how a wealth tax was ditched in the 1970s which you can read here.Responding to Deputy Prime Minister Nick Clegg’s call for an emergency wealth tax in this morning’s Guardian, Matthew Sinclair, Chief Executive of the TaxPayers’ Alliance, said:
“Taxpayers can only hope that Nick Clegg realises proposals for a wealth tax are a dead end before it is too late, as Denis Healey did when he tried the same thing in the 1970s. It would be a practical nightmare to introduce and a huge danger to Britain's already struggling economy. Many countries which have tried wealth taxes have found they produce unfair results and capital flight on an enormous scale. In recent years a number of those countries have abolished their wealth taxes. It would be a disaster if Britain went in the other direction.

“The Government should instead work to reform and simplify Britain's existing taxes, abolishing loopholes to ensure that everyone pays their fair share. More than that, the Government needs to get spending under control so that in the longer term the tax burden can be eased for everyone.

“It is somewhat ironic that Mr Clegg uses this same Guardian interview to suggest that David Laws will soon be returning to the Government: after all, the Yeovil MP has articulated better than most the need for lower tax rates, tax reform and lower public spending. He was recognised as the TPA’s Pin-Up of the Month in June for that reason.

“With excessive taxes already choking off the economy and placing an excessive burden on families and businesses alike, the last thing the Coalition should be considering is new taxes. Politicians have spent too much, not taxed too little.”

Click here to see David Laws’ award for Pin-Up of the Month for June 2012. He received the award after writing an essay published by the Institute of Economic Affairs which is available to download here and for remarks he made in a Sunday Telegraph interview.

Our Founder Matthew Elliott has previously blogged about how a wealth tax was ditched in the 1970s which you can read here.

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