Tackling the wealth gap - 'Wealth tax' will not work - published inewspaper 28th July

[ReadingLib]

Only the first paragraph was published under the heading” ‘Wealth tax’ will not work”.  

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Owen Smith’s “wealth tax” is not a wealth tax, it is an investment income tax.  It may help to finance the NHS, which is great, but it would do nothing to reduce the growing inequality of wealth in the UK and the dangerously growing awareness of that inequality.  To tackle this wealth gap, he must start talking about the positive redistribution of inherited wealth in each new generation.
 
He should take a leaf out of the Liberal Party’s policy book (see . Genuine Opportunity).
 
Once we are out of the EU, we can and must introduce a gradually increasing UK Universal Inheritance payment for all 25 year old UK-born UK citizens, financed and clawed back in due course from the more fortunate by taxing cumulative lifetime receipt of capital gifts and bequests.

[Stone de Croze]

I can definitely see the merit of this policy, and presume through more progressive taxation as well as the reformed inheritance tax would finance this. I can see this policy will help generate home ownership and aspire people, especially if we have an education system and social support to encourage this. Where I do feel this fails is supporting those under 25. We often hear that income is upside down, that you earn more when you are older when you don't need it and less when you are younger when you do need it. Admittedly, give an 18 year old £1000 to spend and it may not necessarily be spent wisely (we have all been young once). But a bond of £10000 guaranteed when someone reaches 25 issued solely for home ownership or business investment would give young people a sense of security and a future. Admittedly this would entail greater funding, but I'm sure through closing tax loopholes and tweaking progressive taxation this is feasible.

In addition to this a real living wage is required payable to all workers. There are businesses that will be unable to pay this, hence why there must be readjustment of business rates and taxation. This would be a major step towards eradicating poverty, with the 'Genuine Opportunity' policy, would provide aspiration which would stimulate aspiration and investment, and circulate money in the economy.