Nick Clegg is advocating an emergency ‘wealth tax’ on higher net worth Britons as the economy slows downs once again.
Mr Clegg, who will give details of his proposed wealth tax at the Lib Dem party conference next month, stated: “People of considerable personal wealth have got to make a bit of an extra contribution towards the national effort”.
The coalition has already announced an austerity program cutting public spending and freezing public sector for at least another 2 years. The Deputy Prime Minister has today said that this can only be fair if accompanied by higher taxes on the wealthy. “If we are going to ask people for more sacrifices over a longer period of time, a longer period of belt tightening as a country, then we have to make sure it is being done as fairly and progressively as possible”.
“If we want to remain cohesive and prosperous as a society, people of very considerable wealth have got to make an extra contribution” stated the Deputy Prime Minister in an interview with the Guardian.
The Liberal Democrats have long been advocates of a ‘mansion tax’ on more expensive properties, which was considered and ultimately rejected by the Chancellor last year. Clegg has stated this time that he is not looking to restart the debate over, but wants to introduce an as yet unspecified tax on Britain’s wealthier people.
Chancellor George Osborne will most likely reject the calls for a new wealth tax, citing his fear of deterring international investment. Senior Conservatives have already accused Clegg of “posturing”, and we can expect to see tensions rise between the coalition partners in the run up to the Lib Dem Party Conference next month..