The opening to this question comes from their own phrasing:
Net wealth encapsulates someone’s control over economic resources
They then go on to propose a wealth tax:
Household wealth between £3.4m and £5.7m would be taxed at 1%; between £5.7m and £18.2m at 5%; and above £18.2m at 10%.
Of course, they rather skate over the fact that 30 seconds before this tax starts there will be no UK households worth more than £18 million and very few above £6 million. Which is why wealth taxes only get that one bite at the cherry, they’re not useful as repeating sources of revenue.
But let’s run with that definition they’re using of wealth there. Which is indeed correct. Average wage in the UK is about £14 an hour. Ignore the detailed difficulties and just run with this for a moment. If you’ve £14 you can command the labour of one person for one hour. If you’ve £14 million then you can get 1 million hours of labour. That’s the command over economic resources that wealth gives you.
Such a calculation runs both ways though. If you can command 1 million hours of labour then you’ve got £14 million in wealth. This is also true and valid.
So, the NHS disposes of what is it, £180 billion a year? So, what’s the tax rate on the Secretary of State for Health?
No, that is a serious question. Wealth is control over economic resources. So, what is that tax rate on someone who is by far the wealthiest person in the country?