Owing to my own good fortune, I have some experience of the advantages that the wealthy get, over the poor. From an email sent to me giving investment advice:
“Consider Capital Gains at 0/18% rather than Income tax at up to 50%”
Oh, you think. – but people getting involved in Capital gains take a risk, don’t they? Read on:
“Utilise a range of appropriate investment notes to provide potential for tax-efficient returns, without necessarily risking your capital”
How clever. This is one reason to support Vince’s idea for CGT-income tax equalization – something first introduced by Nigel Lawson (as a favour, someone else could find me the link). I appreciate that social-justice is not the only criterion for designing tax (see attack on Fabians earlier), but it is a clear and present one here.