Tim Worstall tackles the ongoing angst about “the wrong sort of people” getting their sweaty mitts on family inheritances and then backhands the ostentatiously super wealthy demanding to be taxed more heavily as “Full Of Shit. Obviously”.
This has to be one of the least sympathy inducing articles ever — rich kids worried about their inheritances. We’re about to have that grand generational shift apparently, trillions upon trillions are going to move from the people who made it to the Lucky Sperm Club.
Woes.
The traditional answer to this is to leave those inheritees be and they’ll blow it all on hookers and coke soon enough. The standard deviation of soon enough is pretty big — the folk tale is clogs to clogs in three generations but the Hervey’s managed to wait until the 7th Marquess for it all to get — quite literally in that case — blown. But, you know, it does eventually happen. There are no really old fortunes.
This isn’t, perhaps, enough for the hurry hurry of the modern world. Thus we get people like this:
Tax, of course, could — should — play a huge part in all this. “Philanthropic donations are a drop in the ocean compared to what even quite minor tax increases on the richest in society would provide,” Lewis says. Patriotic Millionaires is calling for a hike in taxation for the super-rich — and its members aren’t limited to millennials. They include Guy Singh-Watson, founder of Riverford Organic Farmers; Graham Hobson, founder of Photobox; the Perry family, from the posh ready-meal business Cook; and Ian Gregg, whose father founded Greggs.
“At the moment philanthropic donations amount to about £10 billion per year,” Lewis says. “A wealth tax of 1 to 2 per cent on assets over £10 million, which would affect only the wealthiest in the UK, would raise more than double that. Closing tax avoidance loopholes would raise much more than this.”
As I pointed out in the same newspaper, The Times, two decades back, this is purest bollocks. For it’s entirely easy to pay extra tax if that’s what you wish to do:
Cheques, by the way, should be made out to “The Accountant, HM Treasury”, and sent to 1 Horse Guards Road, London SW1A 2HQ.
Job’s a good ‘un. Except, back then, near no one did. I managed to get the numbers out of The Treasury for the previous year — it took some months as they were amazed that anyone had even thought of checking this — and a whole 5 people had paid that extra tax. Four of whom were dead, leaving bequests. That is, the UK, that year, contained one whole person willing to pay higher tax than duly and justly levied upon them. Some flood of patriotic millionaires there was not.
Matters do not seem to have improved greatly:
But something is not working. The accounts of the Debt Management Office for the year ended 31 March 2020 show that it received donations or bequests totalling just £48,957. While that’s a large percentage increase on the £11,069 received during the year ended 31 March 2019, by any standards these figures are tiny.
Not the sorts of amounts likely to make a great impact upon a lifetime’s supply of coke and hookers, is it?
One correct answer to these claims by the Patriotic Millionaires is therefore that they’re full of shit. In slightly more technical language they’re doing ethical performativity. There’s always a difference between expressed preferences — what people say — and revealed preferences, what people do. What people really believe is in what they do — but it’s entirely possible that saying the right things, even if not doing them, will get you invited to the right sorts of parties. You know, the ones where someone else pays for the hookers and coke. So, people say things they don’t do for reasons of societal enrapture. Hardly an uncommon human activity, that.
I seem to remember linking to an article of Tim’s on the old blog, but that’s long been offline. More recently, we’ve seen this exact scenario play out in Norway, the UK, the United States, and the City of Toronto.
His Majesty King Charles, in right of Canada, would also be happy to accept any unwanted sums of money above your mandatory tax rate here. Go wild, wealthy and patriotic Canadian multi-millionaires!
