Professional classes stand in way of tax on the super-rich | Phillip Inman

📰 source: theguardian_business · 💼 business

the professional classes—company managers, lawyers, doctors, judges, senior civil servants—act as a praetorian guard for the super-rich, defending tax privileges on land, property and pensions. they pay a higher share of tax receipts than 15 years ago and resist further increases. this blocks reforms that could raise funds for public services and economic growth. prime minister andy burnham faces limited borrowing options and may raise taxes on the wealthy, including a land value tax (lvt) to replace council tax and stamp duty. dan neidle's tax policy associates proposes a flat lvt rate of 1.28%, raising £56.7bn, with 70% of homes outside london paying less. other ideas include raising capital gains tax to match income tax rates and targeting families with over £100m in assets who pay near-zero tax. a 2019 tax commission recommended a one-off wealth tax raising over £300bn. the professional classes' resistance, rooted in 40 years of pension and property accumulation, will test burnham's resolve.

why it matters: professional classes block wealth taxes, stalling reforms that could fund public services and reduce inequality.

source: theguardian_business
sentiment: -0.20 · impact: 0.40