What are the Barriers to Taxing Wealth? The Case of a Wealth Tax Proposal in the UK

Abstract

Abstract Over the past decade there have been repeated calls for the greater taxation of wealth. These calls have had little impact on policy. There has been a global trend to reduce or abolish taxes on wealth. The contrast suggests that it may be better now to explore how taxes on wealth may be made a reality rather than designing new tax proposals. What are the barriers to tax wealth? This paper addresses this by conducting a case study of a high profile plan for introducing a one-off wealth tax in the UK. It identifies a tyranny of the status quo, framing and the policy process as key barriers to tax reform. It uses thematic analysis to study how the plans for a one-off wealth tax were discussed in the media and the UK Parliament. This paper argues that there were important shortfalls in both the way the case for a wealth tax was framed as well as the engagement with the policy process. It claims that a stronger framing would have discussed wealth inequality in greater depth and there was a need for a less equivocal case to Parliamentarians.