Recurring Property Charge

[Shotoflight]

Just hot air?

http://www.telegraph.co.uk/news/politics/conservative/9514859/Cut-tax-and-spend-less-Tory-Right-tells-George-Osborne.html

Just days after the Deputy Prime Minister called for a new emergency tax on the rich, The Sunday Telegraph has established that Mr Clegg is backing plans for a new annual property tax that would cost homeowners in prosperous areas thousands of pounds a year.

The “land value tax” is to be discussed at the party’s conference later this month and also has support from Vince Cable, the Business Secretary, and Ed Davey, the Environment Secretary. Some Lib Dems are pushing for the annual charge to be levied at as much as 1.5% of the property’s value. Others supporters believe the tax should be based on a site’s rental value.

The charge could penalise those with large gardens, second homes or vacant properties.

“A land value tax is ultimately where many in our party would like to go – particularly as it as a tax on wealth, not income,” a senior Liberal Democrat source said. “Will it be Government policy? We’ll have to wait and see – we are in a Coalition. But there is a good chance it will become party policy. It’s the natural successor to a Mansion Tax.”

The tax – also known as the “recurring property charge” - is being promoted by a Lib Dem pressure group called Action for Land Taxation and Economic Reform (Alter). The president of Alter is Chris Huhne, the former Environment Secretary who will next month stand trial for perverting the course of justice over a speeding ticket.

The five vice presidents of the group include Mr Clegg, Mr Cable and Mr Davey.

A Lib Dem pamphlet trumpeting the policy suggests that those who live near the HS2 rail line would have to pay more tax as they benefited from their proximity to the line.

The suggestion will enrage many living near the proposed route, who say the value of their homes has plummeted since the Government announced the path of HS2.

The land value tax is one of many new levies floated in a tax consultation document to be discussed at the Liberal Democrats Brighton conference.

Activists will also discuss plans to remove tax-free ISA accounts and tax relief on pension contributions for the better off.

[porca misèria]

Good man. OR would be, if he'd raised the idea back in the days when people listened to him.

But a bit of a turnaround for someone whose policy not so long ago was to abolish council tax and replace it with local (yet more) income tax.

[Executive Sadman]

Never happen. Most the big gardens around here are ex-council houses.

They do this every so often, in 2005 it was 'the local income tax' to replace the council tax (ie the opposite of what they apparently now want)

[RufflesTheGuineaPig]

Just days after the Deputy Prime Minister called for a new emergency tax on the rich, The Sunday Telegraph has established that Mr Clegg is backing plans for a new annual property tax that would cost homeowners in prosperous areas thousands of pounds a year.

The “land value tax” is to be discussed at the party’s conference later this month

********. This is purely as a deal breaker. They know the Tories wont back it.

Once the Olympics were over they always planned to end the coalition. They told us so the that "Tories breaking the deal" statement during the Olympics. This will be the justification they use for ended it. Don't plan a holiday in October, there will be an election.

There is no way the Tories will ever let this through and we all know it. The Tories will have the army machine gunning people on the streets before we see a land tax.

I've said if before and I'll say it again. The only way you'll see land tax is following the army overthrowing the government, and there's only a 50% change of that happening in the next few years.

[JustYield]

In so far as ‘democratic’ power is wielded in this country we live in a gerontocratic/land hoarding circle jerk

... and they didn't even have the courtesy to give a reach-around.

[Gone baby gone]

There is no way the Tories will ever let this through and we all know it. The Tories will have the army machine gunning people on the streets before we see a land tax.

I've said if before and I'll say it again. The only way you'll see land tax is following the army overthrowing the government, and there's only a 50% change of that happening in the next few years.

Do you think the Lib Dems are even expecting the Tories to pick this up? They can feel which way the wind is blowing and are getting their policies ready for their new partners... the Labour party!

Makes complete sense for a socialist party. Once the Labour party become one, this would be a policy they can actively support.

[Mr Jib Fingers]

While I'm in favour of a land value tax, I see no mention of large landowners or corporations with landbanks. Will the Queen end up paying a fortune on all her land? What about farmland?

It seems like they just want to clobber the average home owner again.

[interestrateripoff]

So this will push up the rents for renters right?

[Game_Over]

Do you think the Lib Dems are even expecting the Tories to pick this up? They can feel which way the wind is blowing and are getting their policies ready for their new partners... the Labour party!

Makes complete sense for a socialist party. Once the Labour party become one, this would be a policy they can actively support.

It would be if most Socialists with any power didn't own multiple properties

Edited September 2, 2012 by Game_Over

[alexw]

It would be if most Socialists with any power didn't own multiple properties

This seems to be what happens to pretty much anyone who acquires power whatever there supposed to political allegiance. They promise this and that, but when in power they ultimately only espouse that which benefits themselves and their oligarchic friends.

[Ulfar]

The Lib Dems are done, at the next election I predict most of them will be out of a job.

For a land value tax to get them any votes it has to be a replacement for income tax/NI and council tax. There would also need to be an exclusion either a cash threshold or the primary home. This way you exclude most of the population. It would have to be on all land, no exclusions or you will get people reclassifying land to avoid it.

I would also implement a citizens income at the same time but that is another argument.

But hey ho this is NEW tax not a replacement.

[Guest TheBlueCat]

... and they didn't even have the courtesy to give a reach-around.

Which one of them is Pvt Pyle?

[Guest TheBlueCat]

Anyone that thinks that Cameron can possibly put any legislation through on the basis of a Lib Dem suggestion or 'demand' even is seriously deluded. At this point I'd suggest they'll be lucky to get anything non-trivial through parliament unless it randomly happens to be something Labour agree with and, even then, probably not.

[Georgia O'Keeffe]

Anyone that thinks that Cameron can possibly put any legislation through on the basis of a Lib Dem suggestion or 'demand' even is seriously deluded. At this point I'd suggest they'll be lucky to get anything non-trivial through parliament unless it randomly happens to be something Labour agree with and, even then, probably not.

dont be such a negative nellie, im sure they could push through an increase in expenses

[Guest TheBlueCat]

dont be such a negative nellie, im sure they could push through an increase in expenses

I think you'll find that, in the mind of your average MP, that counts as trivial. I think there's a pretty good chance of the government collapsing at the next finance bill myself. It's a shame because there is stuff that they still agree on in principle - reduction of the number of criminal laws, some civil liberties things etc - but they now hate each other so much that they're fully into nose cutting territory. Any idea of compromise is long gone.