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Mansion tax bullet misses M.P.s
Why...
MP's living in a small flat in London, sorry I mean their mansion, will be subject to Mansion Tax if valued at over £2m; same as some others living mainly in the South East. However unlike those homeowners, the current rules will apparently allow our Politicians to claw mansion Tax back as an allowable expense. Yet another example of 'do what I say' not 'do what I do'.
...and another thing
A concern about Mansion Tax is the belief the amount you take out of an economy is elastic. If the sum raised is expected to be £1.5b (that is net income so in fact £3b gross income at the rate proposed by supporters of the tax) that money will simply no longer be spent in the local economy. That’s less money on goods and services, restaurants, garages, shops, the very people whom the majority of the proponents of this tax wish to support. Will they be the ultimate losers?
...and another thing
Apart from the fact collection and valuations will either take forever or be so sweeping as to be patently unfair, the only solution is to raise a sales tax to the vendor with a sliding scale to zero depending how long they have owned it. This is fairly common in Europe and stops speculation as to get to zero you have to own the property for five years. However now you begin to undermine one of the sacrosanct British rules that a homeowner’s capital gain is tax free. Sadly the temptation to grab another slice of what effectively is many people’s pension, may seem irresistible.
...and another thing
Why do we allow MEP’s to sit in the European Parliament and tell us about taxation when they themselves are income tax exempt? “No taxation without representation” was the battle cry for Colonialists to become Americans but it can be interpreted two ways! You want to tax me, then pay it yourself.
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