Britain’s deputy prime minister called for an increase in taxes on capital gains and on the priciest real estate transactions, saying it was harder for the wealthy to avoid taxes on assets they couldn’t just pick up and move.
Bloomberg reported Monday that Liberal Democrat Nick Clegg called for the government to increase revenues via higher taxes on capital gains and on the pricey residences of the wealthy instead of through cuts in welfare.
“Most people in this country don’t understand why people who have very high-value property don’t pay their fair share,” he said in the report. “It’s easier to stop tax avoidance on bricks and mortar than on money you can move around the world.”
While Clegg is trying to bolster support for his party, which has been falling in the polls, his stance risks a resumption of hostilities with Conservatives, many of whom are calling for cuts in welfare rather than higher taxes on the wealthy to pad the government’s bottom line.
Clegg himself lost support and drove his party’s ratings down back in the March budget, by supporting a cut in the top income tax rate without also insisting on a “mansion tax” that Liberal Democrats had insisted must also be pushed through. Now he is outspoken in his approval of the latter measure.