Millions of people would be forced to disclose the value of their homes, investments and assets under Liberal Democrat plans for an emergency tax on wealth.
The Deputy Prime Minister believes that the proposed tax, which would see an annual levy of about half a per cent on the value of a person’s total wealth, could raise billions of pounds to prevent deeper public spending cuts.
Experts warned that it would prove “impossible to administer” and other countries were abandoning similar taxes because of the complexities involved.
George Osborne said it might also “drive away wealth creators”. The Chancellor said: “I am clear 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.”
Senior Tories described the tax plan as a “kite-flying exercise” by Mr Clegg which was highly unlikely to become government policy. The Lib Dem leader caused confusion when he said higher taxes on the rich were necessary if society was to “remain cohesive”.
Mr Clegg said: “If we want to remain cohesive and prosperous as a society, people of very considerable personal wealth have got to make a bit of an extra contribution.”
Tim Farron, the Lib Dem party president, said: “Income tax is one way of raising money. It’s probably more effective to do so by taxing wealth and assets. There are a range of things that can be done.”
He said the new taxes would involve Britons “opening their books” to HM Revenue and Customs.
(Excerpt) Read more at telegraph.co.uk ...
