Under cover of capital gains, the hyper-rich have been getting richer than we thought

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    • #318188
      Cold Mountain Trail
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      • Total Posts: 8,492

      When anyone complains of “rising inequality” – because that’s how it feels for so many people – the Tories and their commentariat brandish official statistics showing it’s not so. The dial on the Gini coefficient hasn’t shifted for years, they claim…

      Now we have proof that this tale isn’t true. Who gains?, a report by the Resolution Foundation released on Thursday, with researchers from the LSE and Warwick University, has found missing billions in earnings of the hyper-rich, all disguised as capital gains – profits from selling an asset for more than it was worth when it was acquired. The share of earnings of the top 1% were far greater and grew far faster than previously disclosed…

      Capital gains are taxed at just 20%, unlike the 45% income tax rate for top earners. With a deft sleight of hand, wealthy individuals and business managers can take large amounts of their earnings in the form of shares or other assets to avoid it being taxed as income…The missing sum of money is enormous – the scale of the switch into capital gains vast… “A lot of capital gains are, in fact, just repackaged income going to the already-rich,” says Summers.

      Who is gaining? Just 9,000 people, who made £1m or more in such a manner, accounting for the majority of the UK’s taxable capital gains. Adam Corlett, senior economist at the Resolution Foundation says these figures show “the top 1% account for £1 of every £6 of taxable income received.” The new figures show the top 1% take a massive 16.8% share of national income. He adds, “That scale of inequality should be addressed…

      https://www.theguardian.com/commentisfree/2020/may/21/capital-gains-hyper-rich-new-report-coronavirus

    • #318261
      tk2kewl
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