Tippet, Benjamin ORCID: https://orcid.org/0000-0003-4704-5735, Onaran, Özlem ORCID: https://orcid.org/0000-0002-6345-9922 and Wildauer, Rafael ORCID: https://orcid.org/0000-0001-6395-6286 (2024) The case for a progressive annual wealth tax in the UK updated. [Working Paper] (In Press)

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Abstract

This paper analyses the revenue potential of a progressive annual net wealth tax in the UK. A progressive net wealth tax is a tax on the stock of net wealth that is designed to raise revenues primarily from the wealthiest individuals. We present a baseline progressive net wealth tax that only taxes the top 1% wealthiest individuals. Individuals with net wealth above £2.2 million (the top 1%) are taxed at a marginal rate of 1%; above £3.6 million (the top 0.5%) at a marginal rate of 2% and above £11.2 million (the top 0.1%) at a marginal rate of 4%. We estimate that in 2018-2020 this tax would have raised between £46 and 78 billion a year after administration costs. It would raise £46 billion if 50% of the tax is avoided, £69bn if 25% of the tax is avoided, and £78 billion if 15% of the tax is avoided. This is equivalent to roughly 8-12% of total tax revenues taken by the UK government in that year. This work updates a previous working paper from 2021.

Item Type:	Working Paper
Uncontrolled Keywords:	wealth inequality; wealth tax; fiscal policy
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory H Social Sciences > HJ Public Finance
Faculty / School / Research Centre / Research Group:	Faculty of Business Greenwich Business School > Political Economy, Governance, Finance and Accountability (PEGFA) > Greenwich Political Economy Research Centre (GPERC) Greenwich Business School > Political Economy, Governance, Finance and Accountability (PEGFA)
Last Modified:	02 Dec 2024 16:09
URI:	http://gala.gre.ac.uk/id/eprint/47322

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