One way for an a wealthy person to get a lot of free media attention is to performatively declare that they should be paying more taxes. This ostentatious virtue-signalling is frequent enough that Tim Worstall has been writing the occasional article about it for quite some time:

For there is this:

Public donations to pay off the national debt have hit their highest level in at least a decade amid growing concern about the UK’s soaring debt mountain.

Members of the public handed almost £700,000 over to the Government through six individual bequests and donations last year, according to Debt Management Office (DMO) figures obtained via a Freedom of Information request.

The amount for the 2023-24 financial year was the highest in at least a decade, with the biggest single payment to help pay off Britain’s £2.65 trillion debt pile coming from a £500,000 bequest, according to the DMO, which did not provide names of individual donors.

One way to think of this — an entirely correct way to think of it too — is that an entire 6 people last year thought that inheritance tax was too low. Which, out of the about 600k deaths (not looked it up but that’s right order of magnitude, it’s not 6 million and it’s not 60k) is not actually a lot. 0.001% in fact.

One of the grand insistences of economics is that watching what people do gives more information about their true beliefs than listening to what they say – revealed preferences, not expressed. So, by what people actually do we have 0.001% of the people leaving estates of any size whatever who think that the tax on estates is too small. This is not a large majority in favour of higher taxes upon estates being left.

But back to the far more important subject, me.

As far as the UK is concerned I did start this off. The reporting on how much people voluntarily leave to the government. Who pays extra that is – who makes a voluntary donation to government. Back in 2006 in fact, back in the depths of the Brown Terror:

LAST YEAR there were five people in Britain who thought that their taxes were too low. No, this isn’t the number of people who have called for higher taxes. Rather, it is those who were so convinced of the righteousness of state spending that they voluntarily sent extra money to the Treasury.

The Americans have been doing this since 1843. It’s always been possible to pay extra to HM Treasury — Stanley Baldwin actually handed over one fifth of his estate while he was still alive. Admittedly, he was Financial Secretary to the Treasury at the time and was asking for donations to aid in paying down war debt but still, props for money where mouth is.

Cheques, by the way, should be made out to “The Accountant, HM Treasury”, and sent to 1 Horse Guards Road, London SW1A 2HQ. A 2nd-class stamp is sufficient and you are encouraged to add a covering note so that your donation is spent in the way you like.

I wrote that piece for The Times simply because I thought it would be a cute thing to do — and I wanted the £200 that went with writing it. As ever with freelance journalism, my money is important.

I also know that that was the first piece that appeared in UK journalism on this point. For when I asked the Treasury they’d no idea at all how many had in fact paid extra. Took them months to find out too. The donations had happened before, but no one had been writing about it. At least, not since Baldwin’s generation.

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!

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!