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Topic: Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:why the Mansion tax is utterly wrong
Posted by: EH McNeill
Date/Time: 05/09/14 14:41:00

There are many factors to this debate - none of them new! The physoicrats originally argued that all tax effectively has to be paid out of rents so they suggested the "impot unique" - a single tax on land. Their argument recognises that there's a difference between the effective incidence and the formal incidence of taxation.

For example, some have argued in this thread that council tax is not a property tax. The physiocrat would argue that this is confusing formal incidence with effective indicence - ultimately if council tax were to be removed, rents (and thus property prices) would rise to negate the effect.*

A significant argument for a property tax is that, if properly implemented, it does not result in reduced economic activity (in the same way for example that a tax on wages results in lower employement). In fact, from an economic perspective, property taxes are amongst the most efficient there are.

I would suggest reading chapter 16 of the Mirrlees Review to get a well balanced review of the literature on this - (http://www.ifs.org.uk/publications/5353).

Finally, the other point that I'd make is that property taxes act to reduce financial inequality - remember that the 100k increase in your property value last year is absolutely no reflection of anything you've done. In fact - the value went up because the location became more highly valued and this is as a result of public spending on infrastructure and your property's proximity to shops, roads and other community services.

A property tax would ensure that this increase in value is returned to the community instead of being put into private pockets. In fact, you could even stop calling it a tax and actually call it a service charge!

So let's not throw the baby out with the bath water. I'm not an advocate for higher taxation, but am an advocate for a fairer system of taxation. Anything that brings more financial equalty and rewards those that work over those that don't, I think is worthy of careful consideration!

* Interestingly, Winston Churchill was a stong advocate of a land-value tax and in one of his speeches he brings up an example of just this privatisation of a public benefit when a toll bridge was bought by the local community in order to prevent them paying a toll.

Read: http://www.progress.org/banneker/chur.html (5th para from the bottom, but it's pretty short if you want to read it all).


Entire Thread
TopicDate PostedPosted By
why the Mansion tax is utterly wrong03/09/14 10:37:00 Lorne Gifford
   Re:why the Mansion tax is utterly wrong03/09/14 12:52:00 Andy Rooney
      Re:Re:why the Mansion tax is utterly wrong03/09/14 15:35:00 Lorne Gifford
         Re:Re:Re:why the Mansion tax is utterly wrong03/09/14 15:46:00 Susan Kelly
         Re:Re:Re:why the Mansion tax is utterly wrong03/09/14 15:53:00 Will Watson
            Re:Re:Re:Re:why the Mansion tax is utterly wrong03/09/14 16:00:00 Lorne Gifford
               Re:Re:Re:Re:Re:why the Mansion tax is utterly wrong03/09/14 16:06:00 Will Watson
                  Re:Re:Re:Re:Re:Re:why the Mansion tax is utterly wrong03/09/14 16:17:00 Lorne Gifford
                     Re:Re:Re:Re:Re:Re:Re:why the Mansion tax is utterly wrong03/09/14 16:26:00 Will Watson
                        Re:Re:Re:Re:Re:Re:Re:Re:why the Mansion tax is utterly wrong03/09/14 16:39:00 Alex Brown
                           Re:Re:Re:Re:Re:Re:Re:Re:Re:why the Mansion tax is utterly wrong03/09/14 17:30:00 Sam Hearn
                        Re:Re:Re:Re:Re:Re:Re:Re:why the Mansion tax is utterly wrong03/09/14 17:08:00 Sam Hearn
                           Re:Re:Re:Re:Re:Re:Re:Re:Re:why the Mansion tax is utterly wrong03/09/14 17:28:00 Philippa Bond
                              Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:why the Mansion tax is utterly wrong05/09/14 14:41:00 EH McNeill
                                 Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:why the Mansion tax is utterly wrong06/09/14 10:27:00 Will Watson
                              Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:why the Mansion tax is utterly wrong05/09/14 14:57:00 Richard Greenhough
                                 Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:why the Mansion tax is utterly wrong05/09/14 15:52:00 Susan Kelly
                                    Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:why the Mansion tax is utterly wrong05/09/14 19:31:00 EH McNeill
                                       Why the Mansion tax is utterly wrong05/09/14 20:19:00 George Knox
                                       Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:why the Mansion tax is utterly wrong05/09/14 20:40:00 Richard Greenhough
                                          Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:why the Mansion tax is utterly wrong06/09/14 15:43:00 Trudie Fuller
                                             Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:why the Mansion tax is utterly wrong06/09/14 20:01:00 Susan Kelly
                                                Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:why the Mansion tax is utterly wrong06/09/14 20:08:00 Julian Pavey

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