Wes Streeting pledges to introduce wealth tax 'that works' if he wins future leadership contest
Mr Streeting, who resigned from his cabinet position last week, has confirmed that he will stand in any future contest to Sir Keir Starmer's premiership
Former health secretary Wes Streeting is pledging to introduce a wealth tax "that works" if he becomes leader of the Labour Party.
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Mr Streeting, who resigned from his cabinet position last week, has confirmed that he will stand in any future contest to Sir Keir Starmer's premiership.
He has insisted that he does have enough support among MPs to trigger a contest, but has suggested his challenge would "lack legitimacy" without rival Andy Burnham being given a chance to return to Parliament.
The Greater Manchester Mayor is among a group of senior Labour figures seen to be jostling to replace Sir Keir, as well as former deputy prime minister Angela Rayner.
Under Mr Streeting's wealth tax plans, he would see capital gains tax equalised with income tax, alongside measures to protect genuine entrepreneurs and long-term investment that contributes to economic growth.
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Wes Streeting MP said: "A member of my family is a cleaner in Lancashire. She pays a higher tax rate on her salary than her landlord pays for the growing value of the home she lives in.
"She slogs her guts out, he puts in far less effort, yet the state rewards him more than her. And we wonder why people are angry.
"The system is penalising work. It’s not fair and it’s bad for our economy. We need a wealth tax that works."
His plans would "address the unfairness in Britain’s tax system" by closing loopholes that "allow people to disguise income from work as capital gains".
They would reward long-term investment and entrepreneurship with lower Capital Gains Tax rates for those who take risks by building companies and creating jobs.
He would also introduce an investment allowance that would incentivise long-term investment by only taxing gains above the rate of inflation.
It has been estimated by The Centre for the Analysis of Taxation that a package like Mr Streeting's could raise up to £12 billion a year.
Mr Streeting added: "A pound made from simply owning assets should not be taxed less than a pound made from a hard day's work. We can do it in a way that is pro-growth, pro-entrepreneur and pro-work."