Burnham faces tax challenge from professional classes, article says
9 reported
A Guardian opinion article reports that Prime Minister Andy Burnham will face a challenge in raising taxes from the professional classes, described as a powerful lobby against tax changes. The article states that Burnham’s ability to borrow is limited, leaving his advisers with little option but to raise more tax. It says taxing the rich would fit with his pledge to make the government “more Labour” to please the left flank of his party. The article discusses a land value tax (LVT) as a potential replacement for council tax and stamp duty, citing a proposal by Dan Neidle’s Tax Policy Associates. It also mentions possible rises in capital gains tax (CGT) and a one-off wealth tax recommended by a tax commission almost six years ago. The article is a single-source opinion piece and has not been cross-referenced.
What’s reported
The article describes the professional classes as a powerful lobby against changes to the tax system.
It states that wealthy gen Xers (born 1965 to 1980) and baby boomers are the people in charge of pretty much everything.
The article says one battleground in Andy Burnham’s first months in office will be how to raise funds to improve living standards.
It reports that Burnham’s ability to borrow more funds will be limited, leaving his advisers with little option but to raise more tax.
The article mentions a land value tax (LVT) proposal by Dan Neidle’s Tax Policy Associates that would replace council tax (£45.2bn) and stamp duty (£11.5bn) with a flat LVT rate of 1.28%, raising £56.7bn.
It states that about 70% of homes would pay less than their current council tax under the LVT scheme, mostly outside London and the south-east.
The article says Burnham has spoken in favor of a land tax.
It mentions people close to the prime minister lobbying for a rise in capital gains tax (CGT) to match income tax thresholds.
The article says a tax commission that reported almost six years ago recommended a one-off wealth tax that raised more than £300bn.
Key figures
Andy Burnham (Prime Minister)
Dan Neidle (Tax Policy Associates)
Fred Harrison (proponent of land value tax, mentioned historically)
Jeremy Corbyn (mentioned as expelled)
Sources: The Guardian
