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05 Sep 2012

Nick Clegg Calls For Tax On UK's Wealthy People

Liberal Democrat leader and Deputy Prime Minister Nick Clegg has suggested introducing a new tax for the country's rich people to ensure that they are contributing to the nation's efforts to cope with the long recession, the Guardian reports.

The proposed emergency tax is also aimed at putting the brakes on social division and the Deputy PM is now taking steps to convince his coalition partners that transferring a higher share of the economic burden to the wealthier is the right thing to do. Clegg is to come up with more specific proposals for the tax at his party's conference this month.

If passed, the tax would concern wealth, rather than income, which is likely to remain taxed at 45% for the time being.

According to Clegg, the move is inevitable since the hard time the UK is currently facing is no longer a "short, sharp recession" and is becoming a longer-term process that requires fiscal tightening and a gradual economic recovery. People need to be persuaded that when the government asks for more sacrifices, it makes it in a fair and progressive way, he said.

Clegg's call for the new tax follows his party's proposal to introduce a mansion tax on properties worth over £2 million. The proposed overhaul in the tax system reflects the party's fears that if taxes are not properly distributed, the cohesion of Britain could be harmed. In order to maintain the prosperity and unity of society, rich people should contribute more to help the country cope with the deficit, he said.

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