Tim Montgomerie: Why is this man writing a column about economics?

This is dire:

Are wealth taxes back in fashion?

OK, excellent, let\’s talk about taxing wealth.

What wealth taxes are being proposed?

One of Labour’s last acts was the introduction of the 50p tax on high earners. Despite the hopes of the Tory Right, the Coalition hasn’t abolished it.

Income tax, at whatever rate, is by definition not a wealth tax, it is an income tax.

Wealth is a stock, income a flow.

A wealth tax would be taxing the stock of wealth that someone owns. \”You\’ve got £2 million in assets we\’ll have 3% of that each year, thank you very much\”.

An income tax is \”You\’ve got £200,000 a year from labour and returns to your wealth and we\’ll have 50% of that thank you very much\”.

Getting confused between these two concepts means that you shouldn\’t be writing columns about these concepts.

3 thoughts on “Tim Montgomerie: Why is this man writing a column about economics?”

  1. To be fair to the man he’s using ‘wealth taxes’ in the sense of taxes targeted at the wealthy rather than just the 50p rate which is as much targeted at stopping people becoming wealthy in the first place.

    I’d be more inclined to quibble over the title “Taxing the rich is certainly good – for politicians” with the question so taxing which group of people isn’t good for politicians? There’s far too much concentration on where to loot the money (Au Murphy) & not enough on what the scum do with it.

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