The hypocrisy of the ‘Patriotic Millionaires’

One hundred and twenty British millionaires, including TV presenter and former footballer Gary Lineker and producer Brian Eno, have written to Prime Minister Andy Burnham calling for higher taxes. “We can afford it,” say the Patriotic Millionaires. “We are not proposing to raise taxes on those who go to work every morning to earn their living, but on the wealthiest citizens, whose income comes mainly from the wealth they hold.” The proposal, supported by Oxfam, is for a 2 per cent tax on assets worth over 10 million pounds. Shortly before taking office at Downing Street, in an interview with Lineker on the BBC, the former mayor of Manchester had not ruled out the possibility of a wealth tax: “We need greater fairness,” he had said. We will have to work hard to ensure the sustainability of public finances. And, at some point, it may be necessary to ask the public to contribute more. But this is not a decision to be taken today: it will be an issue to be addressed in the future.”

The relationship between the tax authorities and wealth resurfaces periodically: yet there is something paradoxical about the fact that it is the very wealthiest who are complaining about the low tax burden. On the one hand, as Tory leader Kemi Badenoch remarked, “they are perfectly free to pay more tax: they can make a bank transfer to the Treasury; no one is stopping them”. On the other hand, the whole issue stems from the complexity of the tax system, which allows the super-rich to engage in tax optimisation, effectively reducing the tax they have to pay. Lineker himself recently won a tax dispute worth 4.9 million. This legal victory confirms that it was his right: but a right is not a duty. Applying the maximum rate of 45 per cent to all income, regardless of its source or corporate structures, would already make a significant difference, both for Lineker & Co and for the British Exchequer. Before calling for higher taxes on others, why don’t patriotic millionaires start by setting a good example?