Okay. Welcome back to Gary’s Economics.

Today we are going to talk about

giving your money to the government.

All right.

So I wanted to do a quick one addressing

one of the most common questions, criticisms

we get on the channel,

which is why do you want to increase taxes?

All of that money is going to go to government.

Government is full of corrupt idiots.

They're going to steal my money.

They're going to waste my money. It's a waste of time.

Don't do it. Gary, you're a communist.

And

I thought this was an interesting one to talk about.

Because there's a kind of a perception

when I say that I want to tax

the rich more, that I must

necessarily be wanting

to give more money to the government.

I must be wanting to increase the size of government.

And I think this is

a good chance basically to show that

this is not what I'm trying to do.

So when I talk about taxing the rich,

first thing to say is I'm talking

about taxing the very rich.

This is not about taxing,

very likely, not about taxing you, not about your kids.

It's not about taxing lawyers

or even bankers or people

who are making sort of 100, 200 grand a year.

We're talking about taxing

extremely wealthy individuals

with wealth of more than £10 million.

And what we want to do is to tax them

so that we can lower your taxes.

This is not really by increasing

the size of government at all.

What I see is a situation

where ordinary families

are increasingly losing their wealth,

and that wealth is flowing

to the very, very rich.

And I'm trying to see

how is it that we can, number one,

protect your family from losing its wealth?

And number two, help your family get its wealth back?

And I think this is,

it's an interesting thing to talk about,

because what is happening

here is quite counterintuitive.

And when I say

we want to tax

the rich, people think immediately more taxation means,

more taxation for me,

less money for me, less money

and wealth for me and my family.

And instead that money and wealth

go into the government.

And people think that Gary's a big government guy.

Gary is a communist.

But really what this is about

is, is about getting your wealth back.

And I think that's quite a,

it's an interesting concept, right,

that we can increase tax

and then increasing in tax,

we can get your wealth back.

So I wanted to just go through

the basic

logic of how

it can be

that increasing tax can make you richer,

because that is ultimately what I'm trying to do here.

Assuming that you are not a super rich person

and you are from an ordinary family.

I want to increase tax to make you richer

and your family, you as an individual.

So how does this work?

The first

and most obvious way is,

if we increase taxation on the super rich,

we can reduce your taxes.

So at the moment we have a tax system

which taxes working people at a very high rate.

You know, I worked

and I made quite a lot of money

and I was paying more than 50% tax at the time.

But it taxes, extremely wealthy families,

extremely wealthy individuals at a rate

often close to 0%.

These guys have an enormous amount of wealth.

They generate enormous amount of income

from that wealth.

They don't pay tax.

If we tax them much more, we can reduce your taxes.

This means more money in your pocket.

This means more money going to you.

Now, I'm not instinctively a big government person,

but we do exist at the moment in this country,

the UK, at the end of 50 years of austerity,

which has really starved

a lot of government services of money,

especially if you look at things like

local government services,

even things like the police, education,

massively starved of money,

things like

the legal system,

the court system, anyone who works

anywhere, especially in local services,

will see massive starvation of money.

So I think at this point

you probably would want to use some of that money

to help fund local services, which are being...

have been decimated the last 15, 20 years.

What this means is

less money for the rich, more money for you

because your taxes are reduced,

more money for local services,

so you won't have to pay for things

which you're currently paying for,

because that would be provided by the government.

You have more money in your pocket.

Local workers around

you will have more money in their pocket

because

government are trying to hire staff,

trying to improve the public services

which have been decimated for a long time.

It means you’ll have more money.

People around you will have more money.

You will be able to spend that money.

People around

you will be able to spend that money,

which means your wages will go up.

So we say, number one, your wages go up.

Number two, your taxes go down.

And that means more wealth in your pocket.

Now there is another channel

by which increasing taxation on the rich

will make you richer.

I think this is also quite

interesting and counterintuitive,

which is if you increase tax

on the very rich people with wealths of £10 million,

£100 million, a billion massively,

you will enforce rich people selling their assets.

If you tax them really, really highly

and to be honest, I think at this point

wealth inequality has become so

large and is growing so quickly.

You really do need to tax

these people really massively.

If you where to tax them a lot,

you could put them in a situation

where they have to sell their assets.

And I think a lot of people

see this instinctively as a bad thing.

It's often an argument that is made.

You shouldn't tax the rich a lot

because maybe they're not that cash rich.

Maybe they're just holding lots of assets.

And if you tax them a lot

they’ll have to sell their assets.

Increasingly, as wealth inequality grows

a bigger and bigger share of the national wealth

of national assets are owned by the very rich.

Now, if you are very rich, say

you have a wealth of £100 million or let's say

£500 million, like Rishi Sunak,

according to the Sunday Times,

you would generate a passive income of £25 million

a year,

£2 million a month.

If the wealth is being held

by people who have a passive income of £2 million

per month,

they will never sell anything.

If you had a large amount of wealth,

you're making £2 million a month.

Why would you ever sell any of your assets?

You're making £2 million a month.

You never need to sell anything.

So increasingly,

we are in a situation where the assets are owned

by people who never have to sell any assets.

If that is the situation,

obviously, working people like you,

like your kids, like a parent

will never be able to afford assets.

If you want working people

to be able to afford assets like housing,

it is essential that the current owners of assets

at some point sell their assets.

If you give all the assets

to people

that never sell assets,

it will be impossible

for working people without assets to buy assets.

This is how things work.

It's impossible to buy a thing if nobody said a thing.

It is vital in order to get things

like housing back

into the hands of ordinary working families,

that the owners of assets sell their assets.

At the moment,

the superrich have enormous passive incomes,

they never sell anything.

We need them to sell their assets.

So for me,

taxing the super rich is not about growing government.

It's definitely not about moving us

to a communist state.

Taxing the rich is about rebalancing

essentially power and ownership in our society.

At the moment,

both government

and the middle class are losing

their wealth rapidly to the rich.

The only way to get that back is through taxation.

If we tax them more, we can tax you less.

You'll have more money.

The rich will be selling assets.

That means you and your kids can have assets.

You can own things. You can be rich.

We're not going to get assets

into the hands of ordinary working people

unless we take them out of the hands

of the people who own everything.

And the only way to do that is through taxation.

So for me,

taxation is about growing the assets

and the wealth of ordinary working people.

And I would like to sort of

get you to see taxation in a new light.

Taxation has been given a terrible brand,

largely by rich people,

because they don't want to pay it.

Taxation is how you define yourself.

Taxation is how you get wealth back from the group

that is taking your wealth.

And I kind of want increasingly, for you

to see taxation as kind of a tool you can use

in essentially a war.

Now, when you have a war,

when you have an invading army,

why do people invade countries?

Why do people start wars?

Because they want to take the assets.

And what is happening in your country?

Assets that used to be owned by the middle class,

that used to be owned

by the government

are, over time, being owned by the rich

and the super rich.

That is what war is. War is about taking assets.

Your assets will not be owned by your kids

or grandkids.

They'll be owned by the kids

and the grandkids of the superrich.

They are an invading army.

The only tool you have to defend yourself is taxation.

So if you tax the rich,

we can get money in your pocket.

We can get assets, to your kids and your grandkids.

If you don't tax

the rich, inequality will grow more and more

and your grandkids will be poor.

So taxation for the rich is about reducing your taxes.

It's not about growing the state.

It's about protecting your kids from poverty.

The government not going to do it.

They're full of extremely wealthy people.

You have to fight back.

You have to use the only tool that you have,

which is taxation.

It's the only way to protect yourself from the rich.

We're going to keep campaigning for it.

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Thank you.