Thursday 21 July 2011

Killer Arguments Against LVT, Not (146)

From The Daily Telegraph:

Mr Padoan argues he should scrap many VAT exemptions – including food, passenger transport and domestic fuel – and abolish council tax and stamp duty in favour of “a property tax based on market values.”

... Instead of HM Revenue & Customs taxing property via stamp duty land tax (SDLT); inheritance tax (IHT); and – in the case of second homes – capital gains tax (CGT); annual liabilities would be calculated, based on estimations of house prices. But Mr Padoan argues that his reforms would “dampen fluctuations in house prices” and are essential to put the British economy on a more stable long-term footing.


I can't find the actual OECD report, but there's a brief summary of it here.

Jolly good, that list of taxes to be replaced will look familiar to regular readers. And then the Home-Owner-Ist shit storm is unleashed; in quick succession we get "would hit house prices", "unpopular", "tenants would face higher costs", "the need to value every property", the "Poor Widow Bogey" ("Any plans to increase the bands for council tax or introduce wealth tax are always accompanied by an outcry about elderly ladies living in large houses on limited incomes").

Yawn, been there, dealt with those.

Then the Homeys shift up a gear and start gibbering "... the more you tax something, the less you get of it. Taxing people’s homes would discourage home ownership and all the benefits that go with that", merrily ignoring the fact that the Home-Owner-Ist policies (heavy subsidies to and light taxation of owner-occupation or rental income) pursued by the UK government over the last ten years has led to a dramatic fall in the number of owner-occupiers (down from 72% to 69% if my memory serves correctly). The flipside is more buy-to-let landlords, more second homes and more vacant homes - homes which would become owner-occupied again if we had such a tax.

But the fun part is the very first comment, it appears that Homeys suffer from a terrible variant of dyslexia which prevents them from being able to take in the list of Bad Taxes which the OECD said should be replaced, and they launch straight into this:

For F**KS sake! More taxes? We're already massively over taxed. We pay tax from the second we're born to the moment till after we're dead. It's utterly disgusting. I'm sick of this endless BS form the state. It costs a f***ing fortune, provides bugger all and is next to incompetent in the dictionary.

I wonder, do these people go into a shop to buy something, do they just accept the goods and then start effing and blinding when the shopkeeper demands payment? Are their short term memories so bad that they forgot that they have just been given something which they wanted and are now being asked to provide something of equal value in return?

8 comments:

Anonymous said...

Yah, but he wants to charge more VAT!

Mark Wadsworth said...

Anon, true, but nobody's perfect.

Part of the reason why VAT is so humungously bad is that land-related stuff is, rather miraculously, all VAT-exempt or VAT-zero-rated, i.e. food, housing, banking, air travel, so if we slapped VAT to all those things at least we'd be able to reduce the overall tax rate on the productive stuff and the VAT on the land-related stuff would be absorbed by land values so doesn't do any harm.

Steven_L said...

I like this one best (Jono)...

"People support ideas that reduce house prices, so that lower incomes can access the property ladder. But if you only do this by destroying the point of owing a house to start with, whats the point?"

#147?

Mark Wadsworth said...

SL, that's quite impressive.

If the whole point of owning a house is not simply having somewhere to live where you can choose how to decorate, then what does he think it is? It's all very cryptic.

Anonymous said...

I thought the best one was when someone basically claimed that LVT was what brought down the roman empire...let me see if I can find it again...

http://blogs.telegraph.co.uk/finance/ianmcowie/100010970/house-prices-would-be-hit-by-revolutionary-property-tax-proposed-by-oecd/#comment-259544974

words fail me...

Fraggle (who can't be bothered to login)

Anonymous said...

Also just noticed that Ian Cowie's very next article bemoans foreigners pushing *up* house prices...

Lazy Fraggle again

Mark Wadsworth said...

Frag, I've skim read the comments a couple of times, and it appears that the Telegraph has the most cretinous readers of any UK newspaper.

This just makes me even more determined to see this happen. With a bit of luck they'll all drop dead of heart attacks or go abroad, thus boosting average IQ and willingness to work in the UK enormously.

Bayard said...

Sadly, I can only see the first 25 comments and there's no option to sort by "Stupidest first".