Vote LibDem to Knock £100,000 Off Your House Value

Henry GeorgeThis 1/2% tax on homes is basically updated Georgist economics.  Henry George was the most influential proponent of the land value tax, an idea that has floated around in liberal circles for two centuries. The problem is that implementing the tax would immediately discount the price of your home. Not the smartest thing to do in an era when many are struggling to stay out of negative equity.  A middle-class family home in London valued at £2,000,000 would lose £100,000 (1/2% x £1,000,000 x 20 multiple). Douglas McWilliams, chief executive of the Centre for Economics and Business Research, points out that it would hit the property market hard, because prices well below the £1 million level would be knocked as well:

Saleboards… home owners would face a double whammy – more tax and a cut in their wealth. The tax would add to Council Tax and Stamp Duty as yet another heavy tax on homeowners. It would be regionally unfair, since virtually the entire tax would be raised in London and the South East, and would be very unlikely to raise the £1 billion the Lib Dems expect – more like £600 million on  our calculations. Unfortunately the current crisis is not a time for clever-clever ideas for screwing additional tax out of the already hard pressed middle classes at a time when property prices have already fallen sharply, the top rate of tax has been raised and the tax deductibility of pensions has been largely removed.

“Vote LibDem for more negative equity” hardly seems like a winning slogan…

UPDATE : They seem pretty intent on shooting themselves in the foot with this extra tax on homeowners in the South East, it will be a gift to Tory candidates in LibDem seats.  It certainly won’t go down well in leafy Twickenham. Vince Cable has a majority below 10,000…



Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

Charles Clarke says Cameron is the most successful PM for over a century…

“Under Margaret Thatcher the Conservatives gained 99 seats. They lost 211 under John Major, gained one under William Hague, quickly and wisely got rid of Ian Duncan-Smith, gained 32 under Michael Howard and have so far gained 133 under David Cameron who, to the great surprise of many (including senior Conservatives), has turned out to be the most electorally successful Tory leader since 1900.”

Top Posts This Week

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.

Facebook

Google Logo Evolution Google Logo Evolution
Corbyn Supporters to ‘Drink Blood of Thatcher’ Corbyn Supporters to ‘Drink Blood of Thatcher’
Government Pleads Guilty to Climate Crimes Government Pleads Guilty to Climate Crimes
New REFERENDUM QUESTION New REFERENDUM QUESTION
“SECURITY” NO. 10’S CORBYN ATTACK LINE OF CHOICE “SECURITY” NO. 10’S CORBYN ATTACK LINE OF CHOICE
Guardian Looking For New Pol Ed Guardian Looking For New Pol Ed

NATIONAL CRIME AGENCY HACKED NATIONAL CRIME AGENCY HACKED
NO CAMPAIGN MAKING FRIENDS: “I HOPE YOU DIE IN A FREAK YACHTING ACCIDENT” NO CAMPAIGN MAKING FRIENDS: “I HOPE YOU DIE IN A FREAK YACHTING ACCIDENT”
CORBYN EQUATES BIN LADEN DEATH “TRAGEDY” WITH 9/11 CORBYN EQUATES BIN LADEN DEATH “TRAGEDY” WITH 9/11
RICH’S MONDAY MORNING VIEW RICH’S MONDAY MORNING VIEW
ENVIRONMENT MAYOR TOTTY WATCH: BRAZIL EDITION ENVIRONMENT MAYOR TOTTY WATCH: BRAZIL EDITION
HAIN GRAVY TRAIN HYPOCRISY HAIN GRAVY TRAIN HYPOCRISY
MONBIOT SKINS & COOKS SQUIRREL ON NEWSNIGHT MONBIOT SKINS & COOKS SQUIRREL ON NEWSNIGHT
DAVE’S CARBON BAGGAGE DAVE’S CARBON BAGGAGE
Daylight Robbery: Met Chain Themselves to £216 Billion 10 Year IT Contract Daylight Robbery: Met Chain Themselves to £216 Billion 10 Year IT Contract
Trumps Hair: Toupee or Not Toupee? Trumps Hair: Toupee or Not Toupee?
BURNHAM BLOWS DOG WHISTLE LINE BURNHAM BLOWS DOG WHISTLE LINE
DCMS FUN POLICE CALLED OFF THE CASE DCMS FUN POLICE CALLED OFF THE CASE
NEW PEERAGES LIST IN FULL NEW PEERAGES LIST IN FULL
WELSH FIRST MINISTER CONDEMNS STEEL WORKERS WELSH FIRST MINISTER CONDEMNS STEEL WORKERS
MOAT CLEANING EXPENSES SCANDAL MP AWARDED PEERAGE MOAT CLEANING EXPENSES SCANDAL MP AWARDED PEERAGE
CHICKEN TORIES CHICKEN TORIES
1 IN 5 CORBYN SUPPORTERS VOTED FOR CLEGG 1 IN 5 CORBYN SUPPORTERS VOTED FOR CLEGG
CORBYN ESCAPES #LABOURPURGE CORBYN ESCAPES #LABOURPURGE
VOICE OF AN OIL DRILL VOICE OF AN OIL DRILL
Wind Turbines: Subsidised Sun Beds Wind Turbines: Subsidised Sun Beds
FLASHBACK: EVERY DAY SEXUAL SEGREGATION FLASHBACK: EVERY DAY SEXUAL SEGREGATION
Control the Camera on this 360° Crossrail Video Control the Camera on this 360° Crossrail Video
Flashback: Labour Leader Vote Hijack, Could Rivals Do a Balotelli? Flashback: Labour Leader Vote Hijack, Could Rivals Do a Balotelli?
Andy Burnham Everyday Sexism Andy Burnham Everyday Sexism