Friday, Jan 09, 2015

Some Economic Sense - But the rent is still To Damn High

Money Week: Rent controls are an awful solution to the high cost of renting

The rent is too damn High - but what should we do about - Tax Land Value of course....,

Posted by pete green @ 02:11 PM (2519 views)
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3 Comments

1. killer bunny said...

Yup!

Friday, January 9, 2015 04:33PM Report Comment
 

2. libertas said...

OF COURSE, if you tax the value of land (as if stamp duty, inheritance tax and Council Tax do not do that enough already), those costs are passed onto RENTERS and home owners, in the form of higher prices AND shortages, as capital allocated to housing by the market is syphoned off into government coffers, used to bail out banks and bomb more brown people instead of to build and revamp houses.

Friday, January 9, 2015 11:08PM Report Comment
 

3. quiet guy said...

"if you tax the value of land (as if stamp duty, inheritance tax and Council Tax do not do that enough already), those costs are passed onto RENTERS and home owners,"

There's a lot of different things packed into that sentence so let's start off by untangling the taxes Libertas mentions from the general concept of land value taxation with a couple of observations.

Stamp duty has been significantly reduced recently. The long term result is expected to be a rise in property prices.
http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11280259/Stamp-duty-reforms-wont-help-first-time-buyers.html
http://www.theguardian.com/money/2014/dec/03/stamp-duty-boost-house-prices
So if reducing stamp duty raises property prices, doesn't that suggest that more stamp duty tax would lower prices?

Council tax is not a tax on property; it is a tax on people residing in properties that falls on the renter unless the tenancy is vacant. If I fail to pay my council tax, the council will take legal action against me, not my landlord.

I'm not sure what relevance inheritance tax is supposed to have to rents.

I do agree that taxing the value of land would impact many home owners.

The above are really just a distraction from the main point which is that Libertas is claiming to have repealed Ricardo's Law of Rent. For the benefit of some of our more recent readers, I refer to this discourse about Ricardo's law of rent:
http://www.housepricecrash.co.uk/newsblog/2012/04/blog-rising-damp-36613.php

Or just Google the phrase "Ricardo's Law of Rent"

Ricardo's Law of Rent is a big subject that has generated a lot of acrimonious talk on the blog. Look around the web for impartial sources of information and don't just take on trust statements like "if you tax the value of land those costs are passed onto RENTERS."

Saturday, January 10, 2015 01:42PM Report Comment
 

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