People of all generations should contribute towards the rising costs of health and welfare and suggests introducing higher capital taxes to avoid “putting the entire tax burden on young people who are already struggling to match the living standards gain of older generations”, according to Resolution Foundation executive chair Lord David Willetts.
Lord Willetts made the case for higher capital taxes on Britain’s record levels of wealth, whilst also proposing a reform of council and inheritance tax.
Willetts stated that Britain has enjoyed 30 years of a time when baby boomers were at their “peak earning power” but we are now “at a tipping point” as the boomers are now moving into retirement, with fewer younger people of a working age taking their place.
“The gift to my children’s generation – and those that follow – should be a fair funding settlement that all contribute to, for a modern welfare state that supports young, old and those in between over the next 60 years,” he said.
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