House prices and Land Value Tax
marknbarrett at googlemail.com
Sun Aug 15 17:51:45 BST 2010
in response to yours i think probably there are a whole host of different
factors contributing to the house price bubble, only some of which you,
James Armstong and others have identified. but it seems to me a good thing
to acknowledge that speculation on the property market and the bubvle that
ensued which was a major contributing cause to the crisis. lvt does not, as
you indicate necessarily punish the poor as it is owners, not renters who
become liable and there is no reason why a hefty exemption band can be
included, as lvt gets phased in, say exemption for owner occupires
of properties worth 250,000 or less and a gradual percentage increase for
bands up from there. while, at the same time(again, gradually, starting with
say the 1st 30,000 p/a earners ) income tax at least for the non mega rich,
anyhow i have cc/d some comrades at labour land campaign carol, robin , dave
and heather so that they can contribute here too
On 14 August 2010 13:54, Tony Gosling <tony at cultureshop.org.uk> wrote:
> Actually Mark, the Guardian leader writer has it right on this one.
> IMO the latest house price bubble has been created by a combination of two
> main factors
> Instability and uncertainty on the stock exchange which has come from war,
> war spending and short selling by the city. This means small investors
> taking their savings out of the stock exchange and putting them into
> buy-to-let property, much more property than they can themselves use.
> Economic migration, which has increased demand for housing, particularly
> over the last 15 years
> Record immigration sees UK population soar
> Land Value Taxation, or LVT, solves none of this. In fact, like the poll
> tax, it undermines one of the most fundamental of our human needs.
> Any ethical taxation policy must recognise that tax should be levied on non
> essentials, the more luxurious goods and services, so as to protect the poor
> and the needy from the burden of taxation.
> Sir Winston Churchill was one of the most powerful advocates of LVT in his
> generation but then again he was not a peace-time prime minister, nor a 'man
> of the people'.
> At 11:59 14/08/2010, Mark Barrett wrote:
> *High house prices not caused by shortage*
> There is no evidence that high house prices<http://www.guardian.co.uk/money/houseprices>are caused by a shortage of homes (Editorial<http://www.guardian.co.uk/commentisfree/2010/aug/06/planning-policy-editorial>,
> 6 August). With over a million properties suitable for housing<http://www.guardian.co.uk/society/housing>lying empty in England alone, it makes no sense to talk of a shortage. There
> are two factors causing inflated house prices: the failure to tax<http://www.guardian.co.uk/money/tax>land values; and the ability of banks to create unlimited credit, leading to
> leveraged speculation in land. In 1970, the average house price (more
> accurately, it is the land on which it stands which increases in value) was
> £4,400. Now it's about £180,000 – an average rise of 9% a year. Speculation
> depends upon a constant supply of ever more indebted buyers – a pyramid
> scheme, whose final collapse is inevitable.
> A land tax would tax unearned gains from rising values and so discourage
> speculation and encourage idle resources to be used, cutting the blight of
> boarded-up properties. It would provide the government with the bulk of its
> revenue, enabling taxes on income and property taxes, such as council tax,
> to be phased out. A land value tax is advocated by the Green party<http://www.greenparty.org.uk/>,
> the Co-operative party <http://www.party.coop/> and even some members of
> the cabinet.
> Ken MacIntyre
> Leatherhead, Surrey
> +44 (0)7786 952037
> "Capitalism is institutionalised bribery."
> "The maintenance of secrets acts like a psychic poison which alienates the
> possessor from the community" Carl Jung
"We hear men speaking for us of new laws strong and sweet /Yet is there no
man speaketh as we speak in the street.”
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