Tuesday, November 20, 2012

Which is the mansion?

Which is the mansion?

A mansion tax on high-end property is a terrible idea - particularly if it comes with whopping rises in stamp duty. What Britain needs is another form of tax altogether.

Posted by martingreen @ 09:10 AM (2244 views)
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10 thoughts on “Which is the mansion?

  • I have little sympathy for those millionaires who live in flats. If the flat owners were happy to buy the over priced accommodation in the first place , the fact remains that they are the new millionaires and should be taxed accordingly. I know I couldn’t afford to buy one of them.

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  • I have commented over there. Give it ten minutes until the first Poor Widow In A Mansion comes along. Good grief, is it beyond the wit of mankind to have some system of exemptions, income-related discounts, deferments, agreement that the heirs will pay it, higher state pension or something?

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  • Interestingly, near the end of the article she says this:
    “we’d swap the lot for a location tax or for a capital gains charge on first homes. ”
    The first part of which is eminently sensible.
    As for “mansion tax” presumably this would just be a property tax on homes with high market values. Prof Paul Vickrey nailed this when he said that property taxes combine in one measure one of the best taxes, land value tax, and one of the worst, taxes on buildings and other improvements.
    N

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  • Nick B, but who invented the stupid phrase “mansion tax”? That wasn’t how it was meant, it does not relate to the size or quality of the building, it relates largely to the value of the plot. I sorely doubt whether there are many £2 million homes on £10,000 plots.

    Further, a tax on buildings and improvements is not the best kind of tax, but it is still not as bad as a general tax on output or earned income. A tax on buildings and improvements is no worse than income tax on rental income and so a good pre-tax decision is still a good post-tax decision, there is hardly a cut-off stage at which a rational landowner decides not to spend money on improvement x, y or z, and seeing as the land is in the UK anyway, he’s hardly likely to spend money improving buildings abroad.

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  • Yes, lets tax all the Millionaires so that they can’t afford to employ other people, and so government can afford a bloated welfare system and trillions of dollars bombing brown people.

    OR, we could all understand that government is a parasite, destroying the economy, and that we should focus not on raising the taxes of the rich, but lowering our taxes to achieve tax equality that way. Noting of course that the rich pay way, way more in terms of income tax.

    And really, it is only the transnational corporations that take their cash off-shore.

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  • Libertas,
    Where is your real example of an economy with no government? Let alone a successful one.
    What have all the Lord Snootys done to earn their pile, actually? Sweet FA.
    N

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  • Mark,
    I disagree about property tax. There isn’t a cut-off point, but there doesn’t have to be for it to have an effect. It makes it less likely that improvements take place, and will choke off the marginal ones at any rate of property tax. Since it’s relatively striaghtforward to separate location value and value of improvements, I think LVTers should go for the real deal.
    N

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  • mark wadsworth says:

    NickB, yes of course we should go for the real deal 🙂 but don’t give the Homeys a hostage to fortune, or else they will wilfully misquote you and say “Even proponents of LVT admit that property taxes include one of the worst taxes, taxes on buildings and other improvements” or words to that effect.

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  • they will wilfully misquote you whatever you say, so I’d rather be misquoted arguing for the real thing.

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  • mark wadsworth says:

    NickB, which is why I would prefer to say that “LVT is the best kind of tax, and even a tax on the total rental value of land and buildings such as Business Rates tends to have much the same effect”

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