1 thought on “Objectives for a post-Brexit tax policy”

  1. Posted 25/07/2016 at 15:06 | Permalink

    “The problems of housing need to be solved through the land use planning system, not by tinkering with the tax system.”

    Nope that’s completely wrong. A 100% Land Value Tax would in an of itself reduce the selling price of homes to their capital only value. So from £270k to £100K, on average. Furthermore because everyone would be paying 100% LVT, not just as renters do now to their landlords, it levels the playing field thus allowing the market to allocate resources at optimal efficiency. It would also shift demand and investment to regions outside London and the SE, where capacity and the potential for growth are highest. This would rationalize existing property resources, negating the need to build much of our planned extra housing in order to accommodate a rising population. And last, but most importantly, the distributional effects would see the discretionary incomes of typical working households rise by tens of thousands of pounds, which solves the real cause of affordability issues for large parts of our society. Those that blame planning are wittingly or unwittingly diverting attention from the fact affordability issues and excessive inequality are but two sides of the same coin caused by an unjust economic system, not a lack of supply of houses. http://capx.co/there-is-no-uk-housing-crisis-and-there-never-was-one/

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