But so too is it by another simple fact. Over 80% of UK personal wealth is made up of tax incentivised assets, either in the form of people’s homes or pension funds or ISAs. That is a staggering fact that makes clear it is the UK tax system that does help create the wealth inequality that we suffer in this country. In that case to tax the resulting imbalances in society makes complete sense.
So, 80% of UK wealth is in pretty mainstream savings schemes and pensions. Belonging to pretty mainstream people too.
This is thus evidence of vast inequality that must be taxed?
I am not saying we need start with a tax on wealth as such, although I see little reason why we should not on the wealth of the top 0.1%, with the sole justification being that they are exceptionally wealthy and that the imbalance this creates society requires redress for no other reason than that.
Well, there’s only the entirety of optimal taxation theory to tell us that we shouldn’t tax wealth. But then that would mean having to know about bits of economics that they awarded the Nobel for.