Starmer again failed to rule out a wealth tax at PMQs. Countries – mostly European – have tried broad wealth taxation. The vast majority have repealed them:
Wealth taxes where introduced resulted in the collection of almost no revenue and caused massive capital flight. Sweden’s wealth tax lasted almost 100 years before it was eliminated. In the year before revenue amounted to just 0.16% of GDP and its abolition had “virtually no effect” on government finances. Millionaires and billionaires stayed away, though…
Three European countries now levy a wealth tax:
Former Labour Chancellor Dennis Healey said: “We had committed ourselves to a wealth tax; but in five years I found it impossible to draft one which would yield enough revenue to be worth the administrative cost and the political hassle.” Good luck to Reeves and Starmer…
Starmer was read out a list of his 13 U-turns on BBC Radio 2, to which he responded:
“Well, I am a common sense merchant.”