Idiot calls for a new wealth tax

[stackpole]

Martin Weale, who is calling for a new wealth tax on house ownership

A leading economic adviser with links to the Treasury today called on the Government to introduce a wealth tax on property which could cost average householders £2,000 a year, after his organisation warned that house prices in the UK are overvalued by as much as 20 per cent.

Martin Weale, the director of the National Institute of Economic and Social Research (NIESR) and member of the Treasury’s Academic Panel, says homeowners should pay 1 per cent of the value of their property in tax in order to prevent rampant house price inflation.

How on earth did he become a director of anything to do with economics?

[AtW]

Economics is said to be not science.

Tax based on value of the house is ... council tax! There are different bands and amounts are calculated accordingly, nothing new here. What he wants is to use different formulae to charge more those who have more expensive houses than others.

[Mailman]

I dont get it, if something is supposedly over priced why tax it?

No, wait...I do get it now Over priced means there's money to make in them thar hills!

Mailman

[Skeptical]

Well after reading the paper I actually liked some of his ideas. He wants to replace other taxes such as the council tax with the property tax and not just introduce another source of revenue for the state.

When some sources of income (house price inflation) are not taxed and other sources of income (stocks) are, it makes the market less efficient because people no longer choose their investments according to their real value.

Of course the problem is that this tax can lead to a major drop in house prices...

[xoggoth]

I was just about to say.. but I see that Atw has already said it. Bloody nuisance, I want to be the source of all common sense on here, armless upstart!

[ASB]

When some sources of income (house price inflation) are not taxed and other sources of income (stocks) are, it makes the market less efficient because people no longer choose their investments according to their real value.

But they are taxed. Not necessarily particulaly effectively in terms of getting it though.

Capital gains is payable on the disposal of any house except the PPR. The PPR iis often taxable at 40% on death.

[AtW]

Capital gains is payable on the disposal of any house except the PPR. The PPR iis often taxable at 40% on death.

Their (NLs) problem is that they can't wait until people die or move house (in environment of hard to sell houses people should move less), but they need taxes like yesterday so they figure since NL is such a good Govt that ensured huge growth in house prices, then, the Govt is entitled to part of that pie.

[VectraMan]

As a tenant I think that's a great idea.

They shouldn't tax on value, but I kind of think they should tax on house price gains. The way the boom went there must be lots of people who "earned" more from the value of their home increasing than they have from salary, so to pay a tax on the amount they gained (over inflation) doesn't seem unreasonable, and would have helped keep prices at a more sustainable level.

[AtW]

As a tenant I think that's a great idea.

Why? If every owner gets taxed, then they will pass it onto tenants, much like British Gas passes over increase in gas prices just like any other provider.

[VectraMan]

Why? If every owner gets taxed, then they will pass it onto tenants, much like British Gas passes over increase in gas prices just like any other provider.

Okay, so just tax homeowners on the house they live in. Buy to let properties are already caught by capital gains IIRC.