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First Time buyer - Questions


itrocky
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46 minutes ago, BelfastVI said:

pointless argument as that's the way rates work. we pay tax on our income and on inheritance over a certain level (you could call that a tax break too).

we as taxpayers subsidies many things - social housing, education, public transport etc, etc and in general we all accept that.

Look at it this way. Two people on equal income (or retired for that matter) in two similar houses but different locations pay different amounts for the same council services. One paying say £600 and one paying the max. 

It is my view the person paying the max amount is subsiding the person paying £600. It is your view that the person paying the £600 is subsiding the person paying the max for the exact same service. 

we have a different view on this point and we will just have to leave it at that. 

 

What we have is a textbook subsidy and a few irrelevant arguments why it's not a subsidy. 

 

We have  a tax with a scale and a cap. The result is a subsidy for anyone above the cap. Pure and simple. Like I said, simple economics. 

Throwing an argument in about service utilisation when the tax is based on asset value is irrelevant.

 

Edited by 2buyornot2buy
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16 hours ago, 2buyornot2buy said:

What we have is a textbook subsidy and a few irrelevant arguments why it's not a subsidy. 

 

We have  a tax with a scale and a cap. The result is a subsidy for anyone above the cap. Pure and simple. Like I said, simple economics. 

Throwing an argument in about service utilisation when the tax is based on asset value is irrelevant.

 

In that case do you agree that the rates payer is also subsiding those who get taxpayer assistance in paying the rates.

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20 minutes ago, BelfastVI said:

In that case do you agree that the rates payer is also subsiding those who get taxpayer assistance in paying the rates.

The amount to be collected in rates is fixed.

The amount is effectively divided amount the total number of rates payers. 

I can't answer that because I don't know if the total number of payers is pre or post rates relief. 

 

 

Edited by 2buyornot2buy
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3 hours ago, 2buyornot2buy said:

The amount to be collected in rates is fixed.

The amount is effectively divided amount the total number of rates payers. 

I can't answer that because I don't know if the total number of payers is pre or post rates relief. 

 

 

it has to be pre as assessment of ability to pay is ongoing.

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1 minute ago, BelfastVI said:

it has to be pre as assessment of ability to pay is ongoing.

Not necessarily. They'll have the data to predict within a certain margin of error. 

But you could still end up with all rates payers subsidising non payers. 

AND lower RV household subsidising higher valve houses due to a cap. 

The lower value households pay more per unit of rateable value than someone over 450k RV

 

 

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