Arun Advani is professor of economics and a commissioner of the UK’s Wealth Tax Commission, and he joins Nate on this episode to discuss the Commission’s call for a one-off wealth tax, and what he thinks of the wealth tax motion Nate has proposed in Parliament.
The Commission found that a one-off wealth tax could generate significant revenue, but also that it “would be economically efficient. Since it is based on wealth at a (past) point in time, a one-off wealth tax does not distort behaviour.”
Nate’s motion calls for, among other tax measures, a one-time tax on extreme wealth - 3% on net wealth over $10 million, and 5% on net wealth over $20 million. The Library of Parliament estimates that such a tax would generate almost $70 billion direct revenue.
Interestingly, this figure is similar to our inclusive recovery fund, which the Fall Economic Statement sets at $70 to $100 billion over three years. So perhaps we should ask those with extreme wealth to pay for our national recovery, an idea that is both fair and efficient.
One-off wealth taxation with Arun Advani