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Homeowners must be taxed on equity in homes to address crisis, MPs told

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    #21
    Indeed you would probably argue a house is a necessity not a luxury so should attract minimal tax.

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      #22
      Originally posted by ChimpMaster View Post
      So why punish people with an annual tax on equity? It's no fault of their own - they didn't ask for their home to gain value.
      Let’s phrase this differently, shall we? Why punish people with an annual tax on their productivity? It’s no fault of their own.

      Stop thinking about this as punishment. Drop the divisive language and imagine a more efficient tax system. Explain to me why that tax system would not tax productivity less and assets more.

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        #23
        The only way to solve the increasing problem of growing wealth inequality is to increase taxes on assets and capital gains. We are going to reach a tipping point in the next couple of decades if something is not done to address this. See Thomas Piketty's book Capital in the Twenty-First Century, it's obvious that most of the Western World has it's head in the sand on this issue.

        Part of the problem is also the fundamental nature of a corporation and it's purpose. Profit at all costs is not healthy for society and investor rewards are out of all sync with wage growth. Our system champions the investor at the cost of the worker and whilst this isn't unusual in itself, it does become a problem when those rewards become far too skewed in favour of the investor and there is insufficient mechanisms within a society to effectively redistribute wealth.

        The middle class are the being eroded and since Plato they have been recognised as the key to a successful society. They are the buffer between the rich and the poor, they pay their taxes, they educate their children, they obey the law and they provide a key function in terms of social mobility for the working classes and the wealthy. Currently the wealthy are steaming ahead and the middle class are retreating. What we are going to end up with is a billionaire aristocracy who rely on robots for most activities and commerce and the majority who will struggle to make ends meet and have no hope of moving up in the world. We are going to end up with another French Revolution but I'm no so sure of it's chances of success given the developments in weapons technology in the last couple of centuries.
        Last edited by ProInDisguise; 15 November 2017, 10:51.

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          #24
          Originally posted by original PM View Post
          Indeed you would probably argue a house is a necessity not a luxury so should attract minimal tax.
          A job is a necessity not a luxury but it attracts a huge amount of tax.

          Comment


            #25
            On the contrary - owning a house is a luxury for most young people these days. Scraping a deposit together without help from family members is becoming an impossible task for most, even those on reasonable salaries. You factor in that most people want to settle down with their life partner and think about kids etc. around their late twenties, its no wonder so many parents end up with their children and then grandchildren still living at home! Or, the alternative and what we are already seeing - many families living in rented accommodation because they simply cannot get a deposit together and then end up trapped there because our rental marking is f'ing expensive.

            Also, the BTL changes which are coming in are only going to make matters even worse - more property going from people who happen to have inherited and rented a second home, or a couple which each owned a house, moved into one and rented the other, will no longer have the tax efficiency element of the rental income, for most it will actually end up costing them money. They'll sell up, create a temporary supply of houses, corporations will buy them at lower prices and rent them again anyway (and we know the changes don't apply to ltd co's) - just meaning we will be back at square one if not worse.

            I have no realistic solution to offer but I did enjoy typing this rant about our house market! Good Day.

            Comment


              #26
              Originally posted by ProInDisguise View Post
              The only way to solve the increasing problem of growing wealth inequality is to increase taxes on assets and capital gains. We are going to reach a tipping point in the next couple of decades if something is not done to address this. See Thomas Piketty's book Capital in the Twenty-First Century, it's obvious that most of the Western World has it's head in the sand on this issue.

              Part of the problem is also the fundamental nature of a corporation and it's purpose. Profit at all costs is not healthy for society and investor rewards are out of all sync with wage growth. Our system champions the investor at the cost of the worker and whilst this isn't unusual in itself, it does become a problem when those rewards become far too skewed in favour of the investor and there is insufficient mechanisms within a society to effectively redistribute wealth.

              The middle class are the being eroded and since Plato they have been recognised as the key to a successful society. They are the buffer between the rich and the poor, they pay their taxes, they educate their children, they obey the law and they provide a key function in terms of social mobility for the working classes and the wealthy. Currently the wealthy are steaming ahead and the middle class are retreating. What we are going to end up with is a billionaire aristocracy who rely on robots for most activities and commerce and the majority who will struggle to make ends meet and have no hope of moving up in the world. We are going to end up with another French Revolution but I'm no so sure of it's chances of success given the developments in weapons technology in the last couple of centuries.
              Good mushroom season this year weren't it

              Comment


                #27
                Originally posted by Pip in a Poke View Post
                Good mushroom season this year weren't it
                You tell me, you are obviously not connected to reality in any meaningful way.

                Comment


                  #28
                  There are two possible taxes considered here; a capital gains tax and a wealth tax based on the value of the asset.

                  The wealth tax is nothing more than a variant on the current council tax - a tax linked to the notional value of your house, relative to other houses in the same area, at a single point in time.

                  It might be that that the CGT would be deferred if you use the profit to buy a bigger house. The CGT would only become payable when the equity is realised. There could also be a sliding scale of tax, reducing the longer you keep the property. This could slow the housing market, but not necessarily kill it.
                  Down with racism. Long live miscegenation!

                  Comment


                    #29
                    Looks like another reason to emigrate

                    Comment


                      #30
                      From skimming - this is not a proposal for an annual property tax, but almost moving SDLT from the buyer to the seller?
                      Originally posted by MaryPoppins
                      I'd still not breastfeed a nazi
                      Originally posted by vetran
                      Urine is quite nourishing

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