solutions for the current crisis

Out of context: Reply #22

  • Started
  • Last post
  • 40 Responses
  • Fax_Benson0

    Here's a workable, sensible option. The much talked about, but hitherto non-existent, mansion tax (in the UK).

    Whatever your opinion on tax levels and who should be taxed what, taxing people's labour is counter-productive. Far better to increase the tax on expensive property and land. - it doesn't do or contribute anything, it merely sits there accruing private wealth. Every house in the UK valued at more than £320,000 pays the same council tax. In London, that means that a 2 bedroom flat is taxed at the same rate as a £5m mansion owned as a holiday home by a foreign billionaire.

    The same principle applies to land in general. If a wealthy property developer buys some land privately, and a publicly funded infrastructure improvement hugely increases the value of the site, the benefit goes straight back to the land owner - untaxed.

    It's true to an extent that taxing the rich can adversely affect their ability re-invest and become wealth creators through job creation. The reality is that many of the mega rich don't recycle their wealth - they lock it up in property and investments. (plagiarised from an artcile in The Times)

    • Property and investments are recycling actually.monospaced
    • depends what the investment / property is.Fax_Benson
    • private property, private land ownership and returns on financial transactions are static wealthFax_Benson

View thread