Jacob Rees-Mogg has called for a scrap on inheritance tax, during a tense clash with Ross Clark on the issue.
Appearing on Jacob Rees-Mogg's State of the Nation, the journalist and author rebutted Rees-Mogg's argument that the tax is 'economically inefficient'.
Rees-Mogg asked: "Inheritance tax doesn't make a great contribution to the Exchequer. It's a very unpopular tax. But actually my biggest concern is that it's extremely economically inefficient and distortive. Wouldn't it be sensible to get rid of it?"
Clark replied: "I think you've made a very good case for closing some of the loopholes, but I'm not for abolishing it altogether. Now I'm like you, I'm in favour of low taxes. I'm very much against punitive taxation on anything, certainly not on inheritance.
"But what I want is for everything to be taxed the same, income, capital gains, inheritance, returns on investments, I think they should all be taxed the same. So, you know, if you, if you inherit £100,000, that's taxed exactly the same as you as if you'd earned it. I mean that to me is fairness."
Clark continued: "This is a fallacious argument, Jacob, because all money is taxed multiple times as it moves through the economy. I mean, you pay your nanny out of taxed income, your nanny has to pay tax. And then if she goes out for afternoon tea and crumpets, the tea shop has to pay tax. So everything is taxed multiple times as it goes through."
Rees-Mogg then argued: "But this is different because the money that just sits in your account is not taxed. Again, it's taxed at a transaction level, but death isn't a financial transaction. It's an act of God."
Watch the debate in full above.
Tune in to Jacob Rees-Mogg's State of the Nation, Monday to Thursday from 8pm, only on GB News.
