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Vote Libdem To Knock £100,000 Off Your House Value

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Vote LibDem to Knock £100,000 Off Your House Value

This 1/2% tax on homes is basically updated Georgist economics. Henry George was the most influential proponent of the land value tax, an idea that has floated around in liberal circles for two centuries.

The problem is that implementing the tax would immediately discount the price of your home. Not the smartest thing to do in an era when many are struggling to stay out of negative equity.

A middle-class family home in London valued at £1,000,000 would lose £100,000 (1/2% x £1,000,000 x 20 multiple). Douglas McWilliams, chief executive of the Centre for Economics and Business Research, points out that it would hit the property market hard, because prices well below the £1 million level would be knocked as well:

home owners would face a double whammy – more tax and a cut in their wealth. The tax would add to Council Tax and Stamp Duty as yet another heavy tax on homeowners. It would be regionally unfair, since virtually the entire tax would be raised in London and the South East, and would be very unlikely to raise the £1 billion the Lib Dems expect – more like £600 million on our calculations. Unfortunately the current crisis is not a time for clever-clever ideas for screwing additional tax out of the already hard pressed middle classes at a time when property prices have already fallen sharply, the top rate of tax has been raised and the tax deductibility of pensions has been largely removed.

With acknowledgement to Guido Fawkes @ order-order.com

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In fact he (Clegg) may as well have said that he is abandoning his pledge to make your balls the size of pomegranates or cover China in a gigantic, Paisley-patterned table cloth.

http://www.thedailymash.co.uk/politics/pol...n-200909212077/

The silly season has started and will only really end when party conferences are over.

It’s the time where, for three weeks solid, we get to hear the mad stupid ideas that usually generate from the great unwashed membership of either sandal wearing hippies in the case of the Lib Dems; donkey jacket wearing shop stewards in the case of Labour; or blue rinsed Tories screaming for the internment of single mothers etc

And so we start this week with the Lib Dems !!!

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<b>Vote LibDem to Knock £100,000 Off Your House Value</b>

This 1/2% tax on homes is basically updated Georgist economics. Henry George was the most influential proponent of the land value tax, an idea that has floated around in liberal circles for two centuries.

The problem is that implementing the tax would immediately discount the price of your home. Not the smartest thing to do in an era when many are struggling to stay out of negative equity.

A middle-class family home in London valued at £1,000,000 would lose £100,000 (1/2% x £1,000,000 x 20 multiple). Douglas McWilliams, chief executive of the Centre for Economics and Business Research, points out that it would hit the property market hard, because prices well below the £1 million level would be knocked as well:

home owners would face a double whammy – more tax and a cut in their wealth. The tax would add to Council Tax and Stamp Duty as yet another heavy tax on homeowners. It would be regionally unfair, since virtually the entire tax would be raised in London and the South East, and would be very unlikely to raise the £1 billion the Lib Dems expect – more like £600 million on our calculations. Unfortunately the current crisis is not a time for clever-clever ideas for screwing additional tax out of the already hard pressed middle classes at a time when property prices have already fallen sharply, the top rate of tax has been raised and the tax deductibility of pensions has been largely removed.

With acknowledgement to Guido Fawkes @ order-order.com

Guido, the city millionaire is wrong (as usual). The proposed tax would only apply on the bit of value over the £1 million threshold. ;) And why shouldn't this unearned wealth be taxed?

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<b>Vote LibDem to Knock £100,000 Off Your House Value</b>

This 1/2% tax on homes is basically updated Georgist economics. Henry George was the most influential proponent of the land value tax, an idea that has floated around in liberal circles for two centuries.

The problem is that implementing the tax would immediately discount the price of your home. Not the smartest thing to do in an era when many are struggling to stay out of negative equity.

A middle-class family home in London valued at £1,000,000 would lose £100,000 (1/2% x £1,000,000 x 20 multiple). Douglas McWilliams, chief executive of the Centre for Economics and Business Research, points out that it would hit the property market hard, because prices well below the £1 million level would be knocked as well:

home owners would face a double whammy – more tax and a cut in their wealth. The tax would add to Council Tax and Stamp Duty as yet another heavy tax on homeowners. It would be regionally unfair, since virtually the entire tax would be raised in London and the South East, and would be very unlikely to raise the £1 billion the Lib Dems expect – more like £600 million on our calculations. Unfortunately the current crisis is not a time for clever-clever ideas for screwing additional tax out of the already hard pressed middle classes at a time when property prices have already fallen sharply, the top rate of tax has been raised and the tax deductibility of pensions has been largely removed.

With acknowledgement to Guido Fawkes @ order-order.com

Badly researched.

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