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

[SueEllen]

Not a good idea. Its not a great way to go. It needs something quicker and not painful.

Flu...

[BrilloPad]

A few cold winters is the answer to an ageing population, don't worry about that.

Not a good idea. Its not a great way to go. It needs something quicker and not painful.

[BrilloPad]

Taken from Property Eye:

Former prime minister Tony Blair has come up with a series of ideas to tackle the ‘housing crisis’, including rent caps and a new annual property tax.

The ‘land value tax’ would see the value of the land that property stands on taxed, rather than the property itself, and would replace council tax and business rates.

The idea is not new, and was a pledge in Labour’s last election manifesto.

Critics dubbed it a garden tax, but supporters say that a land value tax would stop developers land banking.

The report, from the Tony Blair Institute for Global Change, also backs the idea of a new sovereign property fund to help councils build. Councils would be given enhanced powers of compulsory purchase to buy under-used properties.

It is also calling for minimum rent periods of three years with caps on rent rises and stronger protection against eviction.

Blair described the new land value tax as a “fairer and more rational system of property taxation” and said that ideas in the report were radical but practical.

In a video Blair criticises the current government for not going far enough in the Budget on its housing proposals, and says it is concentrating on Brexit rather than housing.

Will he cite WMDs and invade?

[Martin@AS Financial]

Taken from Property Eye:

Former prime minister Tony Blair has come up with a series of ideas to tackle the ‘housing crisis’, including rent caps and a new annual property tax.

The ‘land value tax’ would see the value of the land that property stands on taxed, rather than the property itself, and would replace council tax and business rates.

The idea is not new, and was a pledge in Labour’s last election manifesto.

Critics dubbed it a garden tax, but supporters say that a land value tax would stop developers land banking.

The report, from the Tony Blair Institute for Global Change, also backs the idea of a new sovereign property fund to help councils build. Councils would be given enhanced powers of compulsory purchase to buy under-used properties.

It is also calling for minimum rent periods of three years with caps on rent rises and stronger protection against eviction.

Blair described the new land value tax as a “fairer and more rational system of property taxation” and said that ideas in the report were radical but practical.

In a video Blair criticises the current government for not going far enough in the Budget on its housing proposals, and says it is concentrating on Brexit rather than housing.

[Hobosapien]

Edit: actually open door immigration is the answer to an ageing population but look where that has got us.

They solved that problem by having an empire where they could tax the foreigners while they lived in their home lands, no need to bring them all to blighty.

When we already have globalisation and multinational companies, a world level government and tax is the simple answer. UN just needs to start thinking like the EU. Sorted.

[LondonManc]

I studied economics a level in 1986. The ageing population was studied. Not one government has done a single thing about it.
The closest was the so called dementia tax, which had the right idea but was poorly thought out, poorly planned and poorly exec...... no they didn’t do it did they so we’re still fooked.

Edit: actually open door immigration is the answer to an ageing population but look where that has got us.

A few cold winters is the answer to an ageing population, don't worry about that.

[Mordac]

More and more public sector IT contracts are being advertised out of IR35 - in other words they cannot get the skills.

Advertised outside IR35, and actually outside IR35 are not the same thing, regrettably.

He said asset tax is paid on how much you paid for the house.

That's a bit stupid if you think of house price inflation in the UK. It means someone who brought their house in the 60s or inherited from their parents will pay £4 there as their neighbour who brought it a year ago will pay £4,000.

I agree, which is why I questioned it.

[Lance]

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

All leads back to the Taylor report.

Actually even if they got tax from people being workers rather than self-employed there would still be an issue. The demographic time bomb of people living longer than when the welfare state was designed has been known since the 80s. There aren't enough workers for the number of pensioners.

I studied economics a level in 1986. The ageing population was studied. Not one government has done a single thing about it.
The closest was the so called dementia tax, which had the right idea but was poorly thought out, poorly planned and poorly exec...... no they didn’t do it did they so we’re still fooked.

Edit: actually open door immigration is the answer to an ageing population but look where that has got us.

[NotAllThere]

He said asset tax is paid on how much you paid for the house.

That's a bit stupid if you think of house price inflation in the UK.

Again we come up against the idea (in the face of all the evidence!) that tax law has to be sensible and fair.

It means someone who brought their house in the 60s or inherited from their parents will pay £4 there as their neighbour who brought it a year ago will pay £4,000.

Yes. And that would put the brakes on house price inflation - less incentive to buy and sell. I doubt the government would want that, but they are a bunch of incompetent loonies, so who can say?

Or maybe they'll just use a value based on council tax valuations, as I said at the start. That's already in place so it'd be easy to implement.

[SueEllen]

1-Have to disagree. It is now very easy to enforce, in that we can assume the public sector rules are about to be enforced on the private sector as well.

More and more public sector IT contracts are being advertised out of IR35 - in other words they cannot get the skills.

2-I don't think there'll be any shortage of lenders willing to offer a re-mortgage service for impending sellers.

3-Don't quite understand this, do you mean the difference between purchase and sale price?

He said asset tax is paid on how much you paid for the house.

That's a bit stupid if you think of house price inflation in the UK. It means someone who brought their house in the 60s or inherited from their parents will pay £4 there as their neighbour who brought it a year ago will pay £4,000.

[Mordac]

No - IR35 is more stupid. It's vague in its implementation, and hard to enforce. Taxing assets in such a way that you pay more tax if you pay your mortgage off can be done quite easily and would raise revenue for the government, since in the UK, usually you're obliged to pay off your mortgage after a term.

Perhaps they'll make it even simpler. No deduction for outstanding mortgage. You pay asset tax on how much you paid for the house.

1-Have to disagree. It is now very easy to enforce, in that we can assume the public sector rules are about to be enforced on the private sector as well.

2-I don't think there'll be any shortage of lenders willing to offer a re-mortgage service for impending sellers.

3-Don't quite understand this, do you mean the difference between purchase and sale price?

[AtW]

Have you actually looked at life expectancy? Life expectancy is already around 80 in the UK.

Average life expectancy is 79.4 for men and 83.1 for women - which is why we have the pensions, NHS and social care problem.

Dire pensions, underfunded NHS and tulip care will solve the problem of high life expectancy - the survivors will be eating black caviar and drinking finest English sparkling wine

[ProInDisguise]

All leads back to the Taylor report.

Actually even if they got tax from people being workers rather than self-employed there would still be an issue. The demographic time bomb of people living longer than when the welfare state was designed has been known since the 80s. There aren't enough workers for the number of pensioners.

And seemingly the answer to that problem is to bring net migration down to the "tens of thousands", Brexit and penalising one of the most productive groups via IR35 so they either retire early or go perm! You couldn't make it up... the legacy of this government will be as an example of how to destroy your own country by pursuing ill thought out populist policies.

All we can hope for is that the pain caused by this idiocy will mean that future generations learn their lesson and actually pursue policies that are in the long term best interests of the country. Brexit is going to be so painful over the next few years that in time you wont be able to find someone who will admit to having voted for it.

[SueEllen]

Have you thought this through? All we'll end up with is a growing population of pensioners with dementia.
If we all live into our 80's and 90's, the cost of pensions and social care is going to go up, not down.

Have you actually looked at life expectancy? Life expectancy is already around 80 in the UK.

Average life expectancy is 79.4 for men and 83.1 for women - which is why we have the pensions, NHS and social care problem.

Not all old people get dementia before they die, but too many people spend the last 13-20 years of their lives being ill.

If people are are healthier, while they may live a few years longer but they won't cost so much in total.

[Mordac]

FTFY

Main problem is pensions plus NHS and social care for the elderly.

Maybe the government should work out how to keep us fit and active for longer - but that would involve regulating the food industry for a start....

Have you thought this through? All we'll end up with is a growing population of pensioners with dementia.
If we all live into our 80's and 90's, the cost of pensions and social care is going to go up, not down.