Covid19 could trigger wealth tax around world

Coronavirus crisis could see wealth taxes implemented around the world, economist claims

Published Mon, May 11 20209:41 AM EDTUpdated 6 hours ago

Chloe Taylor@ChloeTaylor141

The world’s wealthiest could be subjected to higher tax rates as governments scramble to fund spending and repair their economies amid the coronavirus crisis, an economist has predicted.

Speaking to CNBC’s “Street Signs Europe” on Monday, Roger Bootle, chairman of Capital Economics, said he was concerned that some governments — including Britain’s — would assume tax rates must go up in order to mitigate the impacts of the pandemic.

“If the deficit doesn’t come down dramatically as a result of economic growth alone, then something will have to be done, and there’s a choice between either reducing the rate of spending or raising taxes,” he explained.

“I’d be very much in favor of reducing the rate of spending — the danger is, if you put up tax rates, you clobber incentives and you reduce the efficiency of the economy, and that’s the very, very last thing that you should be doing.”

Bootle added that a tax response to the crisis would become a political issue as policymakers navigated reopening their economies, recovering lost GDP (gross domestic product) and pleasing the public.

“It’s about social acceptability, and I think it’s possible in a number of countries after all this people might feel that taxes need to go up for some social reason,” he told CNBC. “In particular it’s quite possible in some countries you’ll see the top taxes — wealth taxes — go up.”

In an opinion piece published in The Telegraph newspaper on Sunday, Bootle argued that while the U.K. government would eventually have to bring down its debt ratio, hiking taxes was not the answer.

“We can do this gradually without imposing huge tax burdens,” he wrote. “We could let higher taxes take the strain, but this would be a huge mistake and could be counterproductive. Instead, if we can keep the growth rate of state spending significantly below the growth of GDP, we can reduce the budget deficit sharply and even turn it into a small surplus.”

Wealth tax

The idea of introducing or increasing tax rates for society’s wealthiest has been floated by economists as the long-term impact of the Covid-19 pandemic becomes more apparent.

According to the International Monetary Fund, the world is set for the deepest recession since the 1930s, with the global economy expected to contract by 3% in 2020.

In a paper published last month, the IMF suggested governments should consider increasing taxes on income, property and wealth through a so-called “solidarity surcharge” as a way of funding programs to protect their economies.

Meanwhile, in an April article for the New York Times, Daniel Markovits, a law professor at Yale and author of “The Meritocracy Trap,” said a 5% tax on the wealthiest 5% of American households could raise up to $2 trillion.

“Our extraordinary battle against the pandemic should draw on the immense reserves that the most privileged among us have accumulated over decades of abundance,” he said.

“Government borrowing is tempting because debt is now so cheap. But borrowing will in the end burden the young, who are now suffering their second economic calamity in a decade. Instead, the relief effort should be funded through a one-time wealth tax imposed on the richest Americans, whose wealth has exploded alongside rising inequality.”

British academics have also been arguing the case for implementing wealth taxes amid the Covid-19 outbreak.

Nick O’Donovan, a senior lecturer at Manchester Metropolitan University’s Future Economies Research Centre, claims the British government could cover the costs of the pandemic with a one-off tax on the wealth of U.K. citizens. Meanwhile, researchers from City University in London have suggested that taxing wealth at the same rate as income could raise £174 billion ($214 billion) to fund the response to Covid-19.

Taxing wealth was a core policy in Senator Elizabeth Warren’s campaign for the Democratic candidacy. Under Warren’s proposal, net worth between $50 million and $1 billion would have been subject to a levy of 2%, while wealth above $1 billion would have been taxed at 6%.

 

And the true motives are coming out for why people want the lockdown to continue. To attempt to change our nation into a socialist country. 

8 Likes
David@accu -

And the true motives are coming out for why people want the lockdown to continue. To attempt to change our nation into a socialist country. 

scary statement, dude.  i don't believe this is some kind of thought out conspircy plan plan to do it, but i can certainly see that scenario playing out.

$2.2 T in stimulus sofar and Bernie has purposes $20t more.  Once people get on the govt nut, it is hard to get them off too

Good fuck em

It's not just the wealthy that are going to get hit by this. The liberal government in Canada had announced a carbon tax before all this broke out. A week ago they announced another increase in taxes to pay for the lockdowns. This is going to hit the middle class like a kick in the nuts.

Cypress in 2013.

EFM -
David@accu -

And the true motives are coming out for why people want the lockdown to continue. To attempt to change our nation into a socialist country. 

scary statement, dude.  i don't believe this is some kind of thought out conspircy plan plan to do it, but i can certainly see that scenario playing out.

It wasn't a preplanned conspiracy, its an attempt to take advantage of a crisis.  Progressives are completely open about it, it's not like some big secret.

I live in a city of 55k.. We have had 10 cases and ZERO deaths. Even the restaurant’s are back open here. At 25%. I guess it’s a pandemic. I just don’t see it myself.

MarcusAurelioFan -

Good fuck em

^^

spjackson77 - 
MarcusAurelioFan -

Good fuck em

^^


Always nice to know who the idiots are.


Fuck this entire concept. It's theft. Nothing more.

Altofsky -
spjackson77 - 
MarcusAurelioFan -

Good fuck em

^^

 

Always nice to know who the idiots are.


Fuck this entire concept. It's theft. Nothing more.



Most ultra wealthy people support this. It's usually the middle morons/young republicans who oppose it, because, reasons. or aoc. or socialism. or some word vomit involving all of those things.

Send the bill to China.

spjackson77 - 
Altofsky -
spjackson77 - 
MarcusAurelioFan -

Good fuck em

^^

 

Always nice to know who the idiots are.


Fuck this entire concept. It's theft. Nothing more.



Most ultra wealthy people support this. It's usually the middle morons/young republicans who oppose it, because, reasons. or aoc. or socialism. or some word vomit involving all of those things.


The ultra wealthy "support" these dumb ideas to try to keep the braindead pitchfork wielded prols like yourself from their doors.

They also know that they are so obscenely wealthy and well connected the they will never be made to pay this tax or any others that they pretend to support.

2 Likes

pay the poor not to breed

spjackson77 -
Altofsky -
spjackson77 - 
MarcusAurelioFan -

Good fuck em

^^

 

Always nice to know who the idiots are.


Fuck this entire concept. It's theft. Nothing more.



Most ultra wealthy people support this. It's usually the middle morons/young republicans who oppose it, because, reasons. or aoc. or socialism. or some word vomit involving all of those things.

They pay lip service to it because it’s better to just say “sure” then to have the negative PR when the SJW dorks come after you on Twitter or whatever. 
 


The truth is, other than that you’re an idiot for believing that, is when the rubber meets the road the wealthy just leave or hide their money. Please see the 40k millionaires/billionaires that left France when the wealth tax was implemented.


Anyone who supports a wealth tax doesn’t understand even the most baseline level of economics. Which is all it takes to oppose it. 
 

1 Like
spjackson77 -
Altofsky -
spjackson77 - 
MarcusAurelioFan -

Good fuck em

^^

 

Always nice to know who the idiots are.


Fuck this entire concept. It's theft. Nothing more.



Most ultra wealthy people support this. It's usually the middle morons/young republicans who oppose it, because, reasons. or aoc. or socialism. or some word vomit involving all of those things.

Please list the ultra wealthy that support a wealth tax.


Id like to see what percentage most is,

Guys.. fuck the poor. These 'poor' rich people may get taxed more. Do I need to say socialism? Cause anything that doesn't favor the rich is that!

spjackson77 - 
Altofsky -
spjackson77 - 
MarcusAurelioFan -

Good fuck em

^^

 

Always nice to know who the idiots are.


Fuck this entire concept. It's theft. Nothing more.



Most ultra wealthy people support this. It's usually the middle morons/young republicans who oppose it, because, reasons. or aoc. or socialism. or some word vomit involving all of those things.


They claim to support it until it arrives. Then they move.

Wealth tax seems crazy to try and enforce. How do you enforce it? 

What about people who have all their wealth tied up in their business? What about people who have their wealth in international investments? Do these people even know what they're worth? Sounds like a nightmare to figure out. 

I also think it's ethically wrong to tax someone on something they've already earned and paid tax on. Idea is insane.

It will drive people to transfer their wealth overseas and hide it. Probably won't pay tax on any income coming from it either.

Seems like it'll be like every other tax policy designed to target the rich... The rich will get exemptions or find loopholes from their super expensive accountants/lawyers whatever and the people who sit at the bottom of the 5% the small business owners, doctors, etc will be the ones who get burned.