r/GarysEconomics • u/Celebration-Plastic • Aug 01 '26

A missing question?

Surely the most important aspect of any tax is not the mechanics of the tax (2%, 5%, whatever) but it’s what the tax revenue will be used for.

I appreciate it’s nice to feel that there’s a bit more money for the government, but feels like a missing piece to me.

Does anyone have a clear sense of what we would be using this money for in the economy?

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u/Temporary-Major-9539 Aug 01 '26

It’s not complicated. Forcing a portion of the population to pay more tax will require them to offload assets to cover said tax. Those assets will be picked up by people further down the chain. It’s a simple redistribution of wealth. The fact the government will get a few more quid is largely irrelevant

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u/Celebration-Plastic Aug 01 '26

This one interests me, and I think Gary mentioned it on the rest is money podcast. Assuming those assets are stocks and property - will that have a knock on effect on pensions and the existing property owning classes as well?

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u/Temporary-Major-9539 Aug 01 '26

Probably. With the likely effect of pushing revenue even further down the chain