The top rate of tax could be replaced with a mansion tax or a levy on the richest in society if it is scrapped,
The problem with the mansion tax, as was pointed out when Vince first suggested it, is that it\’s not so much a tax on wealth as a tax on geography.
Property prices vary wildly around the country: £2 million might buy a decent house in Fulham (no, not a mansion, just a decent family house) while I\’m not sure it\’s actually possible to pay £2 million for a single family house in Wales at all is it?
To some extent this is true of income tax as well: wages are higher in London, people working in London on the average wages for the area pay higher marginal rates than those working on average wages elsewhere: because those average rates are higher. And the cost of living there is higher, at least in part due to those higher property prices.
But it\’s still true that higher property taxes based on a national price structure will disproportionately be paid by those in London and the SE.
If they moved to a proper land tax of course the benefits would outweight this regional imbalance. But \”pay more for a more than £2 million house\” would hit swathes of Londoners and perhaps 3 people in Wales.