Unveiling True Wealth Creators: Does Inheritance Tax Deter Entrepreneurs?

David Biesterfield has expressed his opposition to a wealth tax, claiming that the promotion of wealth generation, rather than its discouragement, is essential for improving public services (Letters, 27 May). However, one must question where the proof of this lies. For the better part of the last four and a half decades, policies have been sculpted to enhance “wealth creation,” including substantial tax reductions for the ultra-wealthy, enabling executives and financiers to accumulate multi-million dollar incomes through salaries and bonuses, allowing property investors to set steep rental prices, and a continuous drive towards privatization which was supposed to foster a vibrant entrepreneurial economy.

Despite these efforts, our public services have reached a state of severe impoverishment. This raises the question: where has all the wealth accumulated, and to whom has it been distributed? Has it amassed at the top, contrary to the trickle-down effects that were promised by Conservative leaders?

Biesterfield might picture wealth creators as multimillionaire industrial magnates and daring entrepreneurs, yet many wealthy individuals simply occupy high-level corporate and financial positions without establishing new industries themselves.

True wealth creators are the diligent workers who daily engage in producing and selling goods and services, which generate profits and ultimately support the substantial incomes and dividends that are distributed in corporate boardrooms.

Pete Dorey

Bath

It is time to dismiss the notion of double taxation on inheritance that David Biesterfield advocates. Most inheritances involve property that has appreciated in value without any active effort to increase its worth. Society has every right to claim a portion of this accrued wealth to assist those less fortunate in generating meaningful wealth that benefits the community.

Stephen Dorril

Netherthong, West Yorkshire

David Biesterfield, without presenting evidence, suggests that inheritance tax discourages the creation of wealth. Perhaps he knows someone who considered starting a business but then thought, “What if it succeeds and is worth, say, £200m at my death? My heirs would only receive £120m after inheritance tax. Why bother?” It’s likely that such individuals are few. This argument certainly isn’t something commonly heard in entrepreneurial circles, such as on Dragons’ Den.

David Cosgrove

Macclesfield, Cheshire