An extra £11bn a year could be raised with a tax on wealth.
Researchers at the University of Warwick and the London School of Economics have urged the government to introduce a version of the US “alternative minimum tax” to stop the very rich gaming the tax system and pay the cost of coronavirus.
They propose a 35% effective tax rate for people earning more than £100,000 on all income, whether it is taken from wages, dividends or capital gains.
The researchers argue that someone earning £100,000 from other means should pay the same amount of tax as someone earning a £100,000 salary.
The research found that those earning £10m a year paid an effective average tax of just 21%, while one in ten people taking home more than £1m paid less tax than a worker of a £15,000 salary.
