British Opposition Labour Leadership Contender Proposes Wealth Tax

LONDON (Reuters) – The candidate vying to lead Britain’s opposition Labour Party has proposed a wealth tax targeting the highest earners in the country, presenting it as part of a "socialist revolution" to attract Labour supporters, as reported by The Times.

Owen Smith, who is aiming to succeed the socialist Jeremy Corbyn, has promised significant public spending funded by an additional £200 billion in borrowing and by imposing taxes on businesses and wealthy individuals, which he claims could generate £13.5 billion annually.

Labour has been experiencing internal turmoil since the June 23 vote to leave the European Union, with many critics asserting that Corbyn failed to do enough to convince party voters to support remaining in the bloc.

Smith has voiced the need for a second referendum on Brexit once a deal is finalized, facing Corbyn in a leadership contest initiated by Labour lawmakers who expressed a lack of confidence in Corbyn’s ability to lead and win elections.

Despite this, Corbyn enjoys substantial support among the party’s membership, who will ultimately decide the leadership outcome.

"We need a revolution," Smith is quoted as saying. "Not some misty-eyed, romantic notion of a revolution where we are going to overthrow capitalism and return to a socialist nirvana — a cold-eyed, practical socialist revolution where we build a better Britain."

Smith’s proposals include reversing cuts to corporate and capital gains taxes, as well as reinstating a top income tax rate of 50 pence on the pound. The funds would be allocated to ending the public sector pay freeze and increasing funding for the National Health Service by £12 billion.

Additionally, Smith has suggested implementing a 15 percent tax on investment earnings for individuals earning over £150,000 annually. This tax would apply to share dividends and income from buy-to-let properties.

The right-leaning Daily Mail commented on Smith’s speech, referring to it as "The second longest suicide note in history," alluding to Labour’s manifesto before the 1983 election when the party suffered a significant defeat against Margaret Thatcher’s Conservatives.