Osborne 'to Rule Out Mansion Tax'

[bankfeeder]

http://www.bbc.co.uk/news/uk-politics-19860672

Chancellor George Osborne has ruled out a new tax on expensive properties as a way of boosting government revenues.

His decision comes as Conservative activists gather in Birmingham for the party's conference.

Mr Osborne's decision could put him on a collision course with his Lib Dem coalition partners who support such a measure.

Prime Minister David Cameron said the conference was "a real opportunity" to "explain" the party's decisions.

Another measure set to be announced at the conference is the freezing of council tax in England.

And there is to be a cap on how much regulated train fares can go up by - so ticket prices will not rise by more than 1% above the rate of retail-price inflation (RPI).

[cica]

Any chance Clegg can do a bean about this? Doesn't look like it. They are a minority partner but they are useless.

[bmf]

http://www.bbc.co.uk/news/uk-politics-19860672

In an interview with the Mail On Sunday, the chancellor explained his decision not to create a tax for expensive properties.

He told the newspaper: "Before the election they will call it a mansion tax, but people will wake up the day after the election and discover suddenly their more modest home has been labelled a mansion.

"We don't think people who have worked hard, saved up to buy a home, should be clobbered with a mansion tax."

Daily Mail demographicsAge	%		15-24	825-34	835-44	945-54	1555-64	2065+	41

"You spend a lot of time governing and deciding and you don't spend enough time explaining. I think conference week is a real opportunity to get out there and explain," he told the Sunday Telegraph.

Telegraph demographicsAge	%15-24	625-34	635-44	645-54	1255-64	2165+	50

Get all your ducks in a row.

Edited October 7, 2012 by bmf

[Gone baby gone]

Christ, those readership demographics paint a revealing picture and explain a lot!

The next decade or two doesn't bode well for the dead tree media though...

[Gone baby gone]

As far as "mansion tax" goes, the Tories biggest mistake is not reforming the tax system. Oh yeah, they've tried a little bit of fiddling at the edges with tax credits and such, but by not making changes to reduce taxes on work and increase taxes on unearned income, they are doomed to fail at the next election.

They are appealing to a group of people with fewer and fewer votes - the well off.

Maggie's true genius was to pick up the votes of the working class. Now, with a bunch of (obvious) toffs in charge, and policies that largely favour the 1% - or do nothing to improve the lives of most voters - they are consigning themselves to the dustbin. I would guess they know this know and are trying to make hay, and get themselves cosied into various large corporates to ensure a highly lucrative post-cabinet period.

[bmf]

As far as "mansion tax" goes, the Tories biggest mistake is not reforming the tax system. Oh yeah, they've tried a little bit of fiddling at the edges with tax credits and such, but by not making changes to reduce taxes on work and increase taxes on unearned income, they are doomed to fail at the next election.

They are appealing to a group of people with fewer and fewer votes - the well off.

Maggie's true genius was to pick up the votes of the working class. Now, with a bunch of (obvious) toffs in charge, and policies that largely favour the 1% - or do nothing to improve the lives of most voters - they are consigning themselves to the dustbin. I would guess they know this know and are trying to make hay, and get themselves cosied into various large corporates to ensure a highly lucrative post-cabinet period.

On the contrary they have understood the core principle of UK politics: over 60s decide who gets in. This is why they are protecting house prices.

Anyone in power who drops the ball on this won't be around for another term.

The tyranny of the majority.

[deflation]

That's the whole population demographic, unless they have nearly 2 million under 4s as readers now. the Wail might do, but not the Telegraph.

I think this is is just 'sounding off' by the Lib Dems. They know it won't get through now, but they can point at the Torys and say "see, they're protecting the rich." Whether it'll recover them any votes is doubtful.

[The Masked Tulip]

Mansion tax is classic political misdirection - it would affect so few.

[aa3]

The Tories could have also cut spending and used the money that freed up to give tax credits to working middle class people.

For me it would be a no-brainer, as 99% of the people who would get cut would never vote Tory as long as the government was paying their wages anyway.

I agree with the Tory position on this mansion tax. A real strength of Britain's economy today is so many very rich people from around the world placing money into the vastness of the Southeast property market. It is a golden goose, that brings a lot of new money into the economy. Even the annual property tax payments the foreigners make are substantial.

Part of the reason to bring the Tories into power was to get the restraint and long term stewardship, after Labour's recklessness.

[Frank Hovis]

Mansion tax is classic political misdirection - it would affect so few.

Then why not let your coalition partner have a small victory to show they actually have some influence?

Osborne has just been bloody rude there.

[Gone baby gone]

On the contrary they have understood the core principle of UK politics: over 60s decide who gets in. This is why they are protecting house prices.

The Tories will suffer the same fate as the Telegraph.

Old people die.

Meanwhile, every year another half million people turn 18 and get the vote. As time goes by successive governments make it increasingly likely that the younger people will become radicalised - or at the very least - voters.

[bankfeeder]

Then why not let your coalition partner have a small victory to show they actually have some influence?

Osborne has just been bloody rude there.

Osborne is nothing but a gatekeeper for the wealthy and influential. His attention is fixed on this task.

As for the mansion tax as an idea - it is typical of the Lib Dem's approach to politics. They have mad ideas like making everybody fart at the same time every day without a single thought about the practicality or consequences of their ideals. Their culture has genetically mutated. The chromasone that deals with how to actually do stuff switched. Instead, it made the men wear socks with their sandals and gave the women chest hair.

Cabinet meetings must be a hoot.

[bmf]

The Tories will suffer the same fate as the Telegraph.

Old people die.

Meanwhile, every year another half million people turn 18 and get the vote. As time goes by successive governments make it increasingly likely that the younger people will become radicalised - or at the very least - voters.

Oh I agree. But in the *short term* it makes more sense to carry on pandering to the incumbents. Telegraph sales remain steady. Politicians get elected.

Nobody in either shadow or real cabinet will be in that position when the boomers are gone.

Nobody in the board room of the telegraph will be there when the boomers are gone.

All are getting jam today and jam tomorrow. It makes no sense from their interest alone to bother with jam in 15 years.

[Matt Bear]

Cameron's argument for dismissing this is laughable though. He makes out that this policy would affect hard working families. I mean who has a £2 million mortgage?

Cameron made clear he supported the move on BBC1's The Andrew Marr Show, saying: "I don't believe we should be a country where if you work hard, you save, you buy yourself a house, you try and pay down the mortgage... I don't want to be a country that comes after you every year with a massive great tax. That is not going to happen."

[frederico]

Cameron's argument for dismissing this is laughable though. He makes out that this policy would affect hard working families. I mean who has a £2 million mortgage?

He's expecting hyperinflation

[Georgia O'Keeffe]

Cameron's argument for dismissing this is laughable though. He makes out that this policy would affect hard working families. I mean who has a £2 million mortgage?

To be fair hes spot on theres no reason why a tax on unearned income such as income&NI tax shouldnt be used to fix his wisteria (until such point as blatant fraud is highlighted at which point it can be reimbursed (minus interest of course) rather than hurting hard working families that extract economic hard earned rent from Land Monopoly

Edited October 7, 2012 by Georgia O'Keeffe

[the shaping machine]

He's expecting hyperinflation

Or assuming "mansion tax" will apply only to mansions in the same way higher rate tax only applies to the rich.

[zugzwang]

Of the bankers by the bankers for the bankers.

[Gone baby gone]

Of the bankers by the bankers for the bankers.

Indeed, and with moves like this the paper thin disguise has fallen away from most people's eyes.

This is a one term government - make no mistake.

[R K]

The tyranny of the majority.

The 'majority' don't have homes > £1m

It's the tyranny of the 1% who own the Tories.

[gadget]

I don't often agree with Simon Jenkins but he had a good article on the mansion tax: no need for a whole new tax with associated bureaucracy, just add a band or two on to council tax (Lid dems hypercritically want to abolish the only asset-based tax we have)

http://www.guardian.co.uk/commentisfree/2012/sep/25/council-tax-make-mansion-dwellers-pay

The old rates, levied on domestic property, were far fairer than council tax. The valuation ratio from bottom to top was about 1:100, whereas the council tax, to appease anger over the poll tax, has a ratio of a mere one to three. As a result, while council tax on lower-value properties has increased in real terms since rates abolition, on expensive ones it has plummeted. I remember some Kensington and Westminster residents paying more than £8,000 a year in rates in the late 1980s. They pay little over £2,000 today. That is in money terms. For a Labour government to leave such a regressive tax unreformed for over a decade is a tribute to Britain's pusillanimous conservatism.

[gf3]

Didn't this forum used to be right wing?

[crash2006]

We can't it's simple, they need to reduce the cost of houses and rents, buy building more homes social homes. On top of that thank the conservatives that they have increased rents on social homes to market rates.

They really know how to hurt people of this country, then look at the reversal of the rail contract, Richard Branson went crying to Cameron about how unfair it was and Cameron personally took charge to change the decision, something he does not do for anything other policy.

Shows you the true colours of the man tories for the rich by the rich screw the working and poor.

Edited October 7, 2012 by crash2006

[jaspers]

The Tories could have also cut spending and used the money that freed up to give tax credits to working middle class people.

For me it would be a no-brainer, as 99% of the people who would get cut would never vote Tory as long as the government was paying their wages anyway.

I agree with the Tory position on this mansion tax. A real strength of Britain's economy today is so many very rich people from around the world placing money into the vastness of the Southeast property market. It is a golden goose, that brings a lot of new money into the economy. Even the annual property tax payments the foreigners make are substantial.

Part of the reason to bring the Tories into power was to get the restraint and long term stewardship, after Labour's recklessness.

Hi aa3. As an American you may not know thatthere are no annual property taxes in the UK apart from local council taxes, in which the highest band ( someone correct if I'm wrong) is a property with a value of £350k. An owner of a property valued at £10 million pays the same council tax as an owner of a property valued at £350k. I say 'owner' of a property worth £10million, it will be held under a company name based in the Seychelles.

You may of course be being ironic in which case…

[porca misèria]

I don't often agree with Simon Jenkins but he had a good article on the mansion tax: no need for a whole new tax with associated bureaucracy, just add a band or two on to council tax

Indeed, that would make more sense within the current framework.

The old rates, levied on domestic property, were far fairer than council tax.

No, the old rates were worse than council tax, or poll tax.

In theory, rates were supposed to be related to property values. In practice they were wildly random. At the time they ended I was living in a one-bed flat, with a £650 rates bill. Two of my then-colleagues had three and four bed houses in the same area, and had rates of £300 and £350 respectively (coincidentally in what is now Nick Clegg's constituency). Some months later I moved a couple of miles to a 2-bed cottage in a slightly cheaper but beautiful area (not Clegg's constituency any more) whose rates had been just under £90. These kinds of anomaly were typical of the rates in reality.