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Propert Tax

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Guest The_Oldie

Interesting article....

A leading economic adviser with links to the Treasury today called on the Government to introduce a wealth tax on property which could cost average householders £2,000 a year, after his organisation warned that house prices in the UK are overvalued by as much as 20 per cent.

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Where did you think Brown was going to get his increased tax income from? All that 'free money' from house price inflation has got to be the most tempting target: it's not as though property owners can avoid a tax on their house.

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Do we think this is a possibility ?

http://business.timesonline.co.uk/article/...2027552,00.html

I also think the government may look at a tax on folk who have second homes

I'm sure the government are thinking about this. I expect they know that the majority of people don't own 2 houses and that a lot of 2nd home owners aren't likely to be Labour voters either, so the political risk of doing this is reasonably low (ok the Daily Mail and it's readers will hate it)

Such a tax would be pretty easy to spin as well, "because of these people your children can't afford to buy a house", "they are the reason you can't afford a bigger house", "there are 1.5million people with out proper homes yet there are 700,000 empty houses" etc...

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When house price's actually fall this tax would be more popular as a replacement of council tax.

Although, I think there would be an additional tax for 2nd home owners.

Edited by Jason

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yes, and as in Denmark we could get round the problem of moaning asset-rich income-poor pensioners by allowing it to be deferred until death and then claimed against their estate......with interest.. :D

Edited by Michael

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Definition of Land Value Tax: "A tax on the value of land exclusive of all buildings and other improvements, the value being the appreciation due to population increase and general economic development of the community for which the landowner, as such, is in no way responsible. It is the unearned increment or economic rent, that is taxed in whole or part." (Dictionary of Economics)

If the community took this UNEARNED increment - since the community created it - not the land owner, then we wouldn't need to tax your effort, ingenuity, generosity, house through income tax, profit taxes, VAT Council Tax etc. The economic rent is that big.

A proper land value tax is the medicine unjust economies like the UK have been crying out for. You think there are VIs driving HPI. That is chicken feed to the anti land value taxation VIs.

However this article misses the point of land tax. 1% accross the board is irrelevant to the BIG landowners but is a killer to people trying to make a living at the margin. All our existing taxes do this too. whenever i hear of an industry that is no longer 'economic' say coal mining in Yorkshire I wonder if it would be economic without the approx 40% tax burden. Quite possibly. And yet these City of London activities could easily be taxed 99% and still be viable. OK there wouldn't be any £1m p.a. speculators but would we miss them? Good riddance.

Oh and as for HPI it would bring all those underdeveloped sites and vacant plots, empty houses into use instantaneously because there would be no possibility to sit on empty land (taxed at same rate as site in use) and wait for its value to rise which is the main cause of land shortage in the uk. That should help bring about the long desired house price adjustment.

For more info see: http://www.landvaluetax.org/whatis.htm

Do we think this is a possibility ?

http://business.timesonline.co.uk/article/...2027552,00.html

I also think the government may look at a tax on folk who have second homes

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I think this tax is a very good idea but should only apply to properties purchased after 2005. And those over the age of 45 should also be exempt. As socialists we need to hit the working classes hard in the pockets as they are the scummers that are buying all the cheap chinese goods and ruining the economy for those hardworking individuals in public services management teams.

A simple tax on having children, coupled with a Stamp duty tax on FTB'ers of 15% would stop house price inflation in an instant, leaving many unoccupied properties for key workers in the Civil Service, and for executives on NHS trusts to have second holiday homes which are currently in short supply. The empty properties could be compulsory purchased using Council Tax funds, and then the houses opened up to anyone working for the Government. This would save a fortune in hotel bills for those people who have to travel in their work on Government business.

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Guest Riser

Property tax will no doubt eventually come to the UK its alrady hurting home owners in the States:

As Property Values Rise, Homeowners Feel Pinch

....Nearly everyone complains about property taxes, but Ms. Snow seems to have a particular point. In the last year, when her land on the edge of Boise's creeping sprawl was reclassified to residential property from agricultural, her taxes rose to $10,871 from $2,200.

Soaring home prices, shifting population and sporadic budget crunches have combined to make property taxes one of the thorniest sources of voter anger and legislative angst in dozens of states. Call it the dark side of the real estate boom.

"There is a lot of interest in property tax relief across the country," said Bert Waisanen, who studies tax trends for the National Conference of State Legislatures. "A lot of states have either recently enacted or are considering a variety of mechanisms, often aimed at finding relief for senior citizens and low-income homeowners who get swamped by rising property values."....

The mechanisms are being put in place to update property values under the cover of council tax reforsm

Council tax inspectors searching properties for home improvements that will increase the charge are to carry attack alarms.

.......New guidelines reveal the extent to which inspectors will snoop on homes as they search for "value-significant features" such as a new bathroom, kitchen, conservatory, landscaped garden or even a nice view.

But ministers fear that the intrusions will be so unpopular they could result in violence.

Under plans by John Prescott, the Deputy Prime Minister, which the Sunday Telegraph first disclosed last year, householders who close the door on bureaucrats face a £500 fine and a criminal record.

The guidelines instruct inspectors from the Valuation Office Agency to measure each room, and also the outside of the house and parking spaces.

Inspectors must report "those abusing, threatening or assaulting referencers and valuers" to the police.

Equipment needed includes "20m tape and/or laser measuring device; clipboard, pens & pencils, eraser, personal alarm; camera".

Caroline Spelman, the shadow local government secretary, said the documents proved there were going to be "invasive inspections of family homes".

"Thanks to stamp duty going through the roof, many hard-working families have decided not to move but to invest and renovate their homes," she said...........

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Martin Weale, the director of the National Institute of Economic and Social Research (NIESR) and member of the Treasury’s Academic Panel, says homeowners should pay 1 per cent of the value of their property in tax in order to prevent rampant house price inflation.

He doesn't seem to predicting a crash then...

But he suggests that revenue from the scheme could be used to abolish other unpopular property taxes.

"I would certainly expect the tax to be a replacement for council tax, but with 1 per cent there would probably be something over, and abolishing stamp duty, which is an obstacle to people moving homes, would be an obvious thing to do," he said.

"Beyond that, if there were any left over, they could think of lower rates of income tax," he added.

Mr Weale said the Government should phase in the introduction of the tax to minimise its distorting affect on the market.

"I would phase out council tax, perhaps over a ten year period, start the tax with a tenth of 1 per cent and have it rise gradually to 1 per cent."

Everybody move along, move along now... nothing to see here.... nothing to see here....

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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