Would a Land/wealth Value Tax help first time buyers and unlock the property market?

vigilaire

What would happen to a person under this tax if they owned a house with a large garden but had very limited income? Would the land be taken off them through the courts when they were unable to pay?

CLAPTON

vigilaire wrote: »

What would happen to a person under this tax if they owned a house with a large garden but had very limited income? Would the land be taken off them through the courts when they were unable to pay?

the same as now if you can't pay council tax
that is you get state benefits

nearlynew

Economist Fred Harrison is probably the most high profile supporter of a land based taxation system.

You can watch him make his case HERE.

(he appears at 2mins.
But if you want to see stacy :blushing:, watch from beginning)


This is him on his own with an even fuller explanation ...

http://www.youtube.com/watch?v=G2xFxS-BIEs

JonnyBravo

nearlynew wrote: »

But if you want to see stacy :blushing:, watch from beginning

:eek: Things are obviously very grim in Glamorgan.

IronWolf

I think its a bad idea, there's already too much tax at the moment. Let people live their lives. What about all the people living paycheck to paycheck, but owning their own house. It's not like land produces any income to pay for said tax, and there is no cost to the government.

CLAPTON

IronWolf wrote: »

I think its a bad idea, there's already too much tax at the moment. Let people live their lives. What about all the people living paycheck to paycheck, but owning their own house. It's not like land produces any income to pay for said tax, and there is no cost to the government.

farmer sell land for say 1million pera acre because palnning permission has beeen give (previously only 10k an acre)

shop keeper pays rent

tenants pays rent

council tax is already paid; land taxes are about redistributing other taxes not collecting more (government can always increae total tax take if they want; VAT, petrol, booze, train fares, services etc)

robmatic

CLAPTON wrote: »

farmer sell land for say 1million pera acre because palnning permission has beeen give (previously only 10k an acre)

shop keeper pays rent

tenants pays rent

council tax is already paid; land taxes are about redistributing other taxes not collecting more (government can always increae total tax take if they want; VAT, petrol, booze, train fares, services etc)

This seems like using a sledgehammer to crack a nut, if what you're wanting to achieve is the faster utilisation of land where planning permission has been granted. Wouldn't it be much, much simpler to just grant planning permission on a time-limited basis - use it or lose it? So a developer has to use planning permission within, say, a couple of years of it being granted?

CLAPTON

robmatic wrote: »

This seems like using a sledgehammer to crack a nut, if what you're wanting to achieve is the faster utilisation of land where planning permission has been granted. Wouldn't it be much, much simpler to just grant planning permission on a time-limited basis - use it or lose it? So a developer has to use planning permission within, say, a couple of years of it being granted?

no the aim is not simply to get faster utilitisation of land with planning permission (although it might have that effect)

it is to get better utilisation of land e.g. replace low value commercial use by higher value residential (or vice versa if applicable) and to return some of the social value of land to the community

planning permission is often already time limited

robmatic

CLAPTON wrote: »

no the aim is not simply to get faster utilitisation of land with planning permission (although it might have that effect)

it is to get better utilisation of land e.g. replace low value commercial use by higher value residential (or vice versa if applicable) and to return some of the social value of land to the community

planning permission is often already time limited

There's already a mechanism in place to replace low value use with higher value use: the market. There is an opportunity there for individuals or businesses to make money; there's no real need to offer any further incentives.

How would a land value tax replace residental use with commercial use?

CLAPTON

robmatic wrote: »

There's already a mechanism in place to replace low value use with higher value use: the market. There is an opportunity there for individuals or businesses to make money; there's no real need to offer any further incentives.

How would a land value tax replace residental use with commercial use?

because of the market