There has
been much talk this week about the UK economy being hampered if the coalition
insists in pushing up tax for the rich, although it could be argued that most
rich are already contributing far more than other people to the country.
Hollande, France’s
new socialist President has also taken the same tact, to increase tax on the
rich, which has met fierce opposition. But the question remains, although we
have offered to lay out the ‘red carpet’ to France’s super rich, are we as a
country not driving out the rich too, but just in a lesser degree, as we have
already seen several hedge funds moving abroad.
George
Osborne, Chancellor expressed his concerns over the new plans during his visit
to Sunderland, where he stated: "I
am clear that the wealthy should pay more, which is why in the recent budget I
increased the tax on very expensive property transactions. But we also have to
be careful as a country we don't drive away the wealth creators and the
businesses that are going to lead our economic recovery."
Nick Clegg has already agreed to cut the top tax
rate from 50p to 45p and has since indicated that he intends to increase wealth tax, and we will see
no more increase on income tax in the UK for the time being. The coalition
sentiment is that by tax the richest in the country, with it’s proposed tax on
homes of £2 million and over would help the country pay off it’s deficit and
improve the economic situation for the long term. We will have to wait until
September to find out what the new proposed changes are going to be at their
party conference.
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