Topic: | Re:Re:Re:Re:Re:Re:Re:Re:David McLoughlin has a direct line into Ruth Cadbury | |
Posted by: | David McLoughlin | |
Date/Time: | 30/04/15 18:40:00 |
Here's a good article from the Economist: http://www.economist.com/news/britain/21644189-labours-proposed-mansion-tax-clumsy-attempt-long-overdue-reform-house-rugby. Current property taxation hasn't changed since 1991 with the top band of Council Tax remaining the same while house prices have increased much faster than prices or incomes. The debate is firstly between those who think the current system is inequitable and those who think any changes to property taxes are a bad thing. Secondly it's between those who think a quick and dirty fix like the Mansion Tax is the way to get some much needed revenue to prop up the NHS now and those who think additional Council Tax bands would be a better idea. I think the final paragraph of the Economist article sums it up in a nutshell: 'Either reform would immediately hit valuations of the costliest properties, as the market priced in the future tax burden. Subsequent owners would pay the tax but save on the initial purchase price, making the tax a bit like a one-off levy on current owners. That makes the outcry from the A-list unsurprising. For mansion owners, now may be a good time to sell up.' |