Tax Better

We have had a lot of focus on a wealth tax recently, to address the growing wealth inequality which is crippling our economy. However wealth taxes, being directed at individuals, are limited to those who are resident in the UK and are limited in who and how they can address inequality. The growing wealth inequality, which has been increasing in the last five decades, is the result of globalisation and large corporations' ability to avoid tax and escape the limitations of international borders and individual governments in imposing taxes on them. Targeting the wealth of resident UK individuals does not address this issue and therefore will not tackle the driving forces of wealth inequality. However we don't need a global international tax, much as it would be a good thing. No point waiting for the unlikely event. By targeting taxes at specific spending policy areas that involve most people's income and using that to redistribute the wealth, we can fix things within current systems of government and global tax systems. 

 

Looking at what most people spend their money on there are a small number of things. In order of expense generally those are housing (rent or mortgage), energy, utilities, food, transport and additional purchases.

 

I believe energy, utilities and transport are best served under public ownership. Where possible the more locally owned the better for efficiency and local accountability/democracy. I leave that change to a future progressive government that is focused on its electorate not party donors and the multinational corporations who lobby and bank roll the current and recent governments.

 

For housing a large program of housebuilding for truly affordable/social housing, at least half of it ring fenced for keyworker housing, and a property tax on owners where it is not their primary residence exempt if the property is let at a social rent, with tax revenue to local councils for the social housing build will help the housing crisis. Sell off of council housing must stop and all social/council/community housing must be protected from future sale, by form of community trust ownership or other means to prevent a repeat of Thatchers detrimental  sale of our precious affordable housing. Borrowing for the affordable housebuilding should be considered under major infrastructure development, for fiscal purposes. A property tax as described is preferable to rent controls as it will incentivise letting at social rent rates whereas rent controls can have inhibitory effects on landlords, with downstream negative effects on availability of housing. We actually have enough housing already in the UK to provide the homes needed. The issue is that these homes are being used as assets, income stream, short term holiday rentals and second homes rather than prioritising their use for one of our most basic needs as a society-affordable homes. Councils can keep lists of keyworkers looking for affordable housing should house owners choose to let at a social rent and would like to let to a key worker. The government's current plan of house building benefits only developers; a lot will be 'build to let', to be owned by multinational corporations, compounding the growing wealth inequality which is driven by unaffordable housing.

 

Junk and ultra processed food must be taxed heavily to reverse the epidemic of obesity and chronic ill health we have seen explode, here and across the world, since ultra processed food companies in the 80s and 90s (using techniques, borrowed from the tobacco industry, of advertising, sales and production of deliberately addictive products ) has driven a health crisis far worse than that caused by tobacco. This  junk/ultra processed food tax income should be used to subsidise farm fresh food and make it available locally throughout the country.

 

To protect the degradation of our community spaces, I suggest an online purchase tax to level the playing field with online companies; for high streets, physical premises, pubs, hospitality; all those places we congregate and develop our communities.

 

 

All of these taxes can go direct to councils to locally fund the affordable housing, fresh food shops and high streets and community venues we need.