Friday, May 28, 2010
Put capital gains tax on all homes
"The Governmentâ€™s proposed increase in capital gains tax on non-business assets is sensible. But it does not go far enough. A reforming and fiscally responsible government would introduce CGT on all home sales. One day it will happen." It seems to me a very fair way to start to balance the government's books. Start off with the tax at 1% and remove stamp duty to compensate, then ramp it up in future years. What fairer way to tax people than on unearned gains they have made by doing nothing cleverer than buying a house on a mortgage and living in it? I can imagine the howls of outrage that will follow.