Friday, September 24, 2010

More support for LVT

Council tax is a fairer tax than most

Eric Pickles's decision to rule out property revaluation for council tax has pleased a lot of people. But the decision is disappointing, and public opposition to revaluation misplaced. There's no reason why a revaluation must lead to higher council tax bills on average. And the current system is deeply unfair. A revaluation of UK property for council tax is long overdue. The council tax system is based on the principle that those with more housing wealth pay more council tax. Sounds fair, right? So it's unclear why a revaluation of housing that's currently taxed on 1991 values should wind so many people up. But special pleading is at its worst when it comes to property. Property ladder devotees know that their pimped-up homes might push them up a band, so they make more noise.

Posted by drewster @ 06:14 PM (1366 views)
Please complete the required fields.



13 thoughts on “More support for LVT

  • I don’t agree.

    Houses don’t use council services but people do. Therefore, if a US style local tax was introduced in place of council tax then everyone would pay for local services, including tourists.

    Reply
    Please complete the required fields.



  • Council Tax is an abomination. It’s calculated (originally) against property values, but as a Renter, I have no benefit of those values nor the benefits of ‘home-ownership’ which policy deliberately denies me – to force me into owner-occupation, which I will not entertain at these prices.

    Yet I still have to pay this ‘service charge’.

    Why, I wonder, did we protest against the Poll Tax back in the early 90’s, only to remain pathetically inert against the biggest rip-off the state could possibly lever against it’s population, increasing it endlessly, year on year.

    Why is anyone, without any rights, standing for this?

    Tax the haves and the beneficiaries – not the have-nots.

    Reply
    Please complete the required fields.



  • The reason people are worried about a revaluation is that from experience they know it will simply be an excuse to raise tax. Governments never do anything else so why would anyone trust them?

    Reply
    Please complete the required fields.



  • Phils,

    As part of my monthly payslip, I pay National Insurance. However I don’t get any services from it! I’ve never claimed benefit and I have a private pension. Therefore I think it’s totally unfair to make me pay National Insurance. Clearly I should only pay as much National Insurance as the services I use from it, which in my case is zero.

    —————————

    Land Value Tax has nothing to do with council services. The land of Britain should belong to the people of Britain; it should not belong to a small group of extremely wealthy landowners. LVT is a rent payment from the occupier to the people of Britain. If foreign millionaires want to live in mansions in London, they should pay rent to the people of London (see also Hans Rausing and Lakshmi Mittal).

    It’s about asking people to pay for the priviledge of having exclusive use of a parcel of land. Council tax is “a fairer tax than most” because it looks a little bit like Land Value Tax.

    Reply
    Please complete the required fields.



  • mark wadsworth says:

    Drewster, I second all that.

    Particularly stomach churningly sickening was the fawning in the HO press (Sun, Mail, Evening Standard i.e. all of them except Guardian and FT) saying “Hooray for the Tories abandoning Labour’s hated tax on improvements! Hard pressed homeowners will save ‘up to’ £320 a year”.

    Let’s not forget that:
    a) There is no evidence that Labour would have had the nerve to do it (they are as Home-Owner-Ist as the Tories).
    b) The Tories have hiked VAT to 20%, which will either increase each household’s tax bill by £400 on average or put 250,000 people out of work (or some combination of the two). And unless this was indeed imposed on us by the EU, there is no evidence that Labour would have done it (they are not as stupid as they look).
    c) The Tories merrily pressed ahead with Labour’s 2% hike in National Insurance (1% on Ee’s, 1% on Er’s) despite the pre-election moaning about “the tax on jobs”. This costs each working household £600 on average. (maybe Labour are as stupid as they look?)

    So there you have it – the Tories have hiked each ‘hard working family’s’ tax bill by £1,000 a year in stealth taxes, and they have stampeded the HO newspapers into celebrating the fact that some people won’t get a reduction in Council Tax.

    Utter, utter sh*ts.

    Reply
    Please complete the required fields.



  • dill mentions poll tax. I was out of the country in those days and am not sure what was so unfair about it.
    Council tax is meant to cover public services, so the more people in a house using those services, the more they should pay.
    Why should the value of the house be the determining factor? Even the number of bathrooms shouldn’t be an issue, as it’s the number of occupants that determines the use of water and wastewater output.
    I am totally against people earning megabucks who barely pay any tax, but the professional classes are just a sitting duck for the taxman and any kind of wealth tax is grossly unfair double-dipping. We just seem to be conditioned to handing over a huge proportion of what we earn to the taxman, but FFS beyond a certain point you have paid your dues.

    Reply
    Please complete the required fields.



  • “As part of my monthly payslip, I pay National Insurance. However I don’t get any services from it! I’ve never claimed benefit and I have a private pension”

    NI contributions go towards your state pension.

    “LVT is a rent payment from the occupier to the people of Britain.”

    I am not an occupier. I OWN my land/property, having just paid a large amount of money for it last year. This included a huge amount of stamp duty so I dont think I owe anything else to anyone. LVT is just an envy tax

    The fairest way to increase revenue is to shut the door on tax loopholes which are expoited by rich people employing tax avoidance & evasion. This would raise £40bn plus evey year and go a long way to cutting the deficit.

    Reply
    Please complete the required fields.



  • LVT is just an envy tax.

    The government should concentrate their efforts on tax evasion and avoidance, which it is estimated would yield at LEAST £40bn every year.

    Reply
    Please complete the required fields.



  • a saver,

    All our tax pays for public services, not just council tax. Everything the government does is a “service” of one kind or another – bin collection and street cleaning on a local level, army and navy on the international level, and everything else in between.

    I agree that an additional land tax would be double-dipping; which is why any new land taxes would have to be accompanied by cuts to income tax or other taxes. Vince Cable’s proposed “Mansion Tax”, a 1% annual levy on homes worth more than £2m, would have raised enough revenue to raise the income tax starting threshold (the personal allowance) from £6,475 to £10,000. If you earn over £10,000, that gives you £700 a year extra income in your pocket. What’s not to like?

    (On your water example: I have a water meter so I only pay for the water I use. Every few months I get a bill from the water company. I understand it’s different in Scotland where the main water company, Scottish Water, is owned by the government, and water bills are included in the council tax bill.)

    Reply
    Please complete the required fields.



  • phils,

    Land Value Tax would be impossible to evade or avoid.

    Reply
    Please complete the required fields.



  • Phils has a point. I envy anyone who is lucky enough to live in a country which has LVT instead of the mish-mash of Income Tax/Council Tax/VAT/Corporation Tax/OldUncleTomCobbleyAndAll Tax which the UK has. Guess that makes it an envy tax.

    Reply
    Please complete the required fields.



  • LVT is just an envy tax.

    From which moral principle is the monopoly land ownership derived?

    Let me have a crack at that ….. selfish greed!

    Reply
    Please complete the required fields.



  • Council tax is a cheeky nonsense, however it isn’t worth my time and money to seriously challenge it yet, given I still need some of their services, which I cannot get easily enough privately yet. Central government taxes are another matter, so will be worth challenging, when I can see an affordable way to do so.

    LVT will not happen while the UK is relatively stable, because the political class is owned by corporate and Banker interests, and it would not be in any these crooks current interests!

    I suspect it will take a major civil uprising or violence, before more radical solutions are seriously considered, so it seems premature to seriously consider or discuss LVT here.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>