Government urged to react on housing affordability

[Nicholas Wallwork]

Data released by the Office for National Statistics (ONS) has cast a very interesting light on the UK property market and in particular the affordability factor. While we are currently in an alien economic environment

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[kchiggs]

The government will react when council tax stops being based on house value.

 

[nmb]

This is where it gets interesting - do you base council tax on ability to pay or should there be a straight fee for everyone? Personally I do not understand the obsession with hammering the rich for tax with a sliding scale on council tax. Dont they get hammered enough with income tax rates? Why do we in the UK seem to see the rich as cash cows?

 

[kchiggs]

This is where it gets interesting - do you base council tax on ability to pay or should there be a straight fee for everyone?

IMHO, you should scrap council tax and switch to an (Unimproved) Land tax value system. Possibly with an exemption for owner-occupiers. Remember a lot of the rich come via CGT rather than income tax so can pay lower rates. Switching to a system that values CTG and Income Tax the same like Netherlands would split the burden more. Also UK income taxes are rather low comparatively. Bulgaria taxes more as a percentage of income.

 

[lookinginvest]

Fair point but when you take into account the massive array of stealth taxes in the UK, it does not compare favourably to the rest of the world. I read recently that we have one of the most heavily taxed property markets in the world.

 

[kchiggs]

Sure and if the majority of people were owner-occupiers that would be a fair system. However it sets up to tax the property owners(remember prior to the 1980s, only wealthy people or corporations were able to become landlords, so it is devised as a tax-on the rich. )The same reason for the second home rules. Everyone needs a first home, but owning a second house puts you in the top 10%. Do you think the 1% should pay more than the 99%? If so why not the top 10% too?

 

[nmb]

I agree that those who earn more - not just own more assets than the average person - should pay more. But I dont agree with bringing in new taxes to hammer the rich just because the economy is struggling and the government can't balance the books. The amount of waste from all governments is outrageous. We hear of hopeless computer systems, trains which are too long for platforms and other investments which have lost tax payers billions of pounds. Yet nobody ever appears to pay the price?

 

[kchiggs]

I thought the entire point of taxation was during the bad times you rose it and in the good times you cut it. Still why your bringing In new tax is important. If a change in technology or knowledge or politics has made an alternative worthwhile then it is worth considering. A land tax would replace council tax and keys else it wouldn't work. The obvious alternative to new taxes is raising other ones in the 70s income tax went up to 90%. I don't believe there was an income either. If the rich don't want to pay, they can move themselves and their assets to Monaco. I agree with you on people needing to pay the price for waste of money. Look at all the state money wasted on Thatcher funeral. Were was the taxpayers alliance condemnation? A piercing the council veil to make individual politicians liable for wasted money can have an effect. Who decides what is waste though?

 

[nmb]

The problem with politicians, whether it is property policies or anything else they do is that they are not indiviudally held to account. If one politician makes a mistake they are cut adrift and pushed over board for the good of the party. They constantly change performance measurements to suit themselves and have no respect for tax payers and voters.

 

[kchiggs]

The problem with politicians, whether it is property policies or anything else they do is that they are not indiviudally held to account. .

Agreed, I belive estonian residents get to e-vote on politicians salary, If the electorate in their seat is pleased with how well the politco did, they get a bonus if not min wage for you.