Vince Cable calls for mansion tax in next Budget

[AtW]

Again, complete failure to understand markets. If the "big buyers" you talk of decide to go elsewhere, then someone else will buy the houses they would have bought, but for a lower price.

Well no tulip Sherlock - if price of some asset goes down then more buyers will be able to afford it! Though it's not obvious that with recurring tax it would be as attractive - it's like buying used Ferrari which is relatively cheap one off purchase but then it might require lots of dosh to keep it running.

Stamp duty doesn't raise anything like the amount of money it did 4-5 years ago because the volume of transactions has collapsed due to the bursting of the bubble.

So you want to make it even less in higher end segment that kept going strong due to foreigners moving in who pay max stamp duty rate of 5% for those houses? If anything they probably are the ones who maintained flow of some money to coffers.

I mean FFS, is charging mansion tax the most pressing economic problem to solve for the Govt?!?! Would it suddenly make people want to invest more into UK? Perhaps it would help companies hire more workers to reduce unemployment? Would it even raise a lot of tax like VAT rate did?

The answer to all of these is NO.

Disclaimer - one of local houses I like costs £2.7 mln but I'd be glad to go for £2 mln one also to give a finger to Vincy

[Freamon]

Well no tulip Sherlock - if price of some asset goes down then more buyers will be able to afford it!

It's all very well saying "no tulip sherlock" but in the previous post you said that the stamp duty from the sale would be "lost entirely", which clearly was incorrect.

Though it's not obvious that with recurring tax it would be as attractive - it's like buying used Ferrari which is relatively cheap one off purchase but then it might require lots of dosh to keep it running.

The point of the tax would be to make it less attractive to hoard shelter that you don't really need. This would mean a fairer allocation of housing for everyone.

So you want to make it even less in higher end segment that kept going strong due to foreigners moving in who pay max stamp duty rate of 5% for those houses? If anything they probably are the ones who maintained flow of some money to coffers.

Doubtful. Firstly there's far fewer of them, and secondly they probably largely avoided the tax by using offshore companies. The vast majority of stamp duty revenue comes from the lower end of the market, which is seized up.

I mean FFS, is charging mansion tax the most pressing economic problem to solve for the Govt?!?! Would it suddenly make people want to invest more into UK? Perhaps it would help companies hire more workers to reduce unemployment? Would it even raise a lot of tax like VAT rate did?

The answer to all of these is NO.

If it makes the economic cycle more stable and predictable then it would definitely encourage people to invest in the UK. A country with booms and crashes is not a good place to do business.

Disclaimer - one of local houses I like costs £2.7 mln but I'd be glad to go for £2 mln one also to give a finger to Vincy

It's £2m, not £2k.

[AtW]

Well, I could either keep argueing with a person whose level of economic idiotism exceeds that of sasguru OR I can focus on finishing breakthrough SKA work that will help get one of those reduced in price mansions

[Freamon]

Well, I could either keep argueing with a person whose level of economic idiotism exceeds that of sasguru OR I can focus on finishing breakthrough SKA work that will help get one of those reduced in price mansions

Yeah, best to bow out now before you embarrass yourself further I think.

HTH

[AtW]

Yeah, best to bow out now before you embarrass yourself further I think.

I propose we'll continue this discussion in my £1,999,999.99 mansion that hopefully I'll get soon - DimPrawn will be serving port and cigars

[Freamon]

I propose we'll continue this discussion in my £1,999,999.99 mansion that hopefully I'll get soon - DimPrawn will be serving port and cigars

Vince Cable will be dead by then.

[Doggy Styles]

The point of the tax would be to make it less attractive to hoard shelter that you don't really need. This would mean a fairer allocation of housing for everyone.

You keep saying 'Hoarding shelter' like some rabid lefty. Unfortunately we've heard all that before from Marx's fellow travellers, and they are totally discredited everywhere.

This isn't North Korea, this is a non-communist state. 'Hoarding shelter' isn't what we do here. We live in our homes, and how big or small they are is none of your business.

[Freamon]

You keep saying 'Hoarding shelter' like some rabid lefty. Unfortunately we've heard all that before from Marx's fellow travellers, and they are totally discredited everywhere.

This isn't North Korea, this is a non-communist state. 'Hoarding shelter' isn't what we do here. We live in our homes, and how big or small they are is none of your business.

So you're happy that 55 year olds, who've never earnt above average wages in their lives, should be able to rattle around in 5 bed £1m+ houses whilst their offspring have to pay 6x their annual salary to afford a 2 bed flat on a ring road? These are some of the wealthiest people in the country, and they haven't earned their wealth, they have simply lucked into it by living in a house. Why do you think motivation amongst 18-30 year olds is so low? Regardless of left/right/"fairness", this isn't a good thing for the economy and the future happiness of the country in general.

I'd rather have a tax system that encourages those who work hard to earn high incomes, not punishes them with high income tax rates, while those who have lucked into their wealth retire at 55 and keep hold of their 5 bed house leaving 4 bedrooms empty just because they think it's their right to do so.

[AtW]

These are some of the wealthiest people in the country, and they haven't earned their wealth

Who made you the judge of that? They either paid income taxes to purchase property or inherited it and paid hefty 40% inheritance tax. The only exception are foreigners who brought in big money - if you piss them off they won't bring it and won't pay stamp duty, won't get their kids to this country to pay hefty edukational fees, won't move their bank accounts etc etc.

You are really a prized cretin Freamon.

[Freamon]

Who made you the judge of that? They either paid income taxes to purchase property or inherited it and paid hefty 40% inheritance tax. The only exception are foreigners who brought in big money - if you piss them off they won't bring it and won't pay stamp duty, won't get their kids to this country to pay hefty edukational fees, won't move their bank accounts etc etc.

You are really a prized cretin Freamon.

Pipe down, Sasguru Jr. They didn't earn it because they bought at far far lower prices and benefited from a massive speculative bubble. Even MF knows this stuff.