Would a wealth tax work?

Roll up, roll up! The biannual Lib Dem half-baked tax policy circus is in town! Last time, the so-called ‘mansion tax’ show never lived up to its billing, as ringleader Clegg tried juggling too many ideas. We had the mansion tax, tycoon tax, new stamp duty bands and the more noble income tax threshold rise to watch. Now, it seems, the spectacle is back – with the big beasts of the Liberal Democrats prowling the airwaves to push for a new wealth tax to ensure the rich ‘pay their fair share’.

Unlike the mansion tax, this policy suggestion would not, we are told, be a permanent feature – but rather a time-limited way to fight our ‘economic war’ and ensure ‘national cohesion’. It all sounds a very dramatic spectacle.

With recent polling suggesting Clegg is walking a tightrope with Lib Dem members, it’s obvious he’s learnt from his experience in March: don’t give up on the mansion tax just yet, but suggest something even more left-wing in addition in order to appease the social democratic wing of your party.