Thursday, August 21, 2014

”We in the UK have been living beyond our means for a very long time”

Osborne pockets £1bn in stamp duty bonanza as house prices soar... but Government borrowing still rises by £10bn

Between April and July stamp duty receipts soared by 25%, figures reveal But public borrowing continues to rise - up £9.4bn from 2013 to £32.4bn

Posted by hpwatcher @ 04:47 PM (3936 views)
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5 thoughts on “”We in the UK have been living beyond our means for a very long time”

  • Stillthinking says:

    The interesting aspect of stamp duty is;
    If I grow apples and I grow a hundred of them, then the government will take about 50 apples. More if I am good at growing them, less if I am bad. Either way apples come into the economy.
    With stamp duty however, one single property which is not improved, changes hands. Nothing is produced, there is no backing economic activity. Stamp duty is not a tax that is levied on production.
    So you can imagine over some period that for some properties the government takes more in stamp duty than the value of the house! This is confiscation, not tax. You can also imagine a not benign state that increases the working population through immigration, and increases spending through borrowing. What would happen if immigration stopped and borrowing became impossible, answer=> crippling spending cuts, credit card stopped effect.

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  • stillthinking says:

    The interesting aspect of stamp duty is;
    If I grow apples and I grow a hundred of them, then the government will take about 50 apples. More if I am good at growing them, less if I am bad. Either way apples come into the economy.
    With stamp duty however, one single property which is not improved, changes hands. Nothing is produced, there is no backing economic activity. Stamp duty is not a tax that is levied on production.
    So you can imagine over some period that for some properties the government takes more in stamp duty than the value of the house! This is confiscation, not tax. You can also imagine a not benign state that increases the working population through immigration, and increases spending through borrowing. What would happen if immigration stopped and borrowing became impossible, answer=> crippling spending cuts, credit card stopped effect.

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  • Yup. ABOLISH stamp duty, and see VAT receipts and Corporation Tax income soar as folk go out and buy new homes, stocking them full of stuff, and carrying out renovation works. IKEA would double the number of stores, along with all the other providers.

    This just proves that certain taxes look good on the face of it, but drag the economy down like a ball and chains.

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  • Libertas ,

    Stamp duty is a bad tax in all respects and does not “look good on the face of it” .

    Therefore your statement that it proves “that certain taxes look good on the face of it, but drag the economy down …” is false .

    Try and be more logical please .

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  • Stamp Duty is one of those few good taxes! It massively reduces the amount people can borrow, which massively reduces the selling price of a house, which massively reduces the debt the find yourself in after buying a house.

    Why do you think the government implemented the stamp duty holiday in 2010? To prop up house prices of course.

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