To think an annual property tax is incredibly unfair?

I have no idea what tax policy this glib response is referring to?

But fair or not fair - a tax policy that costs more money than it saves is a poor economic decision.

When I lived in America our property taxes did fall during a housing crash.

The annual property tax being suggested is that everyone pays 0.48% if their property value each year. Do you think that's fair?

Of course it might not be implemented but this thread is about whether the concept is fair in itself

Everyone has set up their finances based on the existing tax structure. A change like this, will create disruption as people reconsider their finances and what they can afford.

A lot of households in the Southeast could be facing 10% of their after tax income going to property tax. Many won’t find this sustainable and will sell. House prices likely to drop. Interesting to know how houses will be valued for this tax. At their sale price? What people have put on their mortgage applications? Surveyor estimate? Can it change if the market dips?

I don’t think any income tax is fair because it fundamentally changes the relationship between government, employers and employees. The implication of an income tax is that you don’t really earn anything. It’s sinister as hell.

Look this tax would be dire for me. It would cost me an absolute fortune, but I’d pay it cause I work in tax policy and it is SO MUCH fairer than our current property tax system. Anything but the diabolical stamp duty. We’ve got to start changing taxes to make them fairer and boost growth. This is an excellent place to start and I will applaud Burnham if he has the balls to go through with it.

Fairness and consistency...
When taxed:
Salary: When you receive it.
Interest : taxed when it is paid.
Dividends: When paid
Capital gains: When realised / sold
Rental income: taxed when received
A potential property tax on your home: Every year on a theoretical unrealised market value.

Sure, Council Tax exists in bands, but it's generally at a more manageable level. For many ordinary people, the jump could be from around £4,500 a year to approximately £9,000. Most people would struggle with that kind of increase.

The people in these home are generally not wealthy billionaires, they are more often, ordinary families, singles people, couples on ordinary PAYE salaries, who have made sacrifices. Forcing people to sell their home or take on debt simply to fund wider public spending doesn't strike me as fair or proportionate.

I'm genuinely interested to hear why you think it is. Why do you think that unrealised gains is a fairer basis for taxation than taxing income and gains when they are actually realised/ received?

I don’t think any asset tax is fair, because it fundamentally changes the relationship between government and private property. The implication of an asset tax is: you don’t really own anything. It’s sinister as Hell.

What asset tax do you think would be fair then? You can buy an asset if you like, but you ought to expect the government to look at that and think if you life in a big house you can afford to pay more tax than those who live in a smaller house.

The government has to raise money to pay for public services. It does so by putting taxes on earnings, rental income, dividend and capital gains, trust income, inheritance. It’s only fair they tax assets held too.

I don’t think any income tax is fair because it fundamentally changes the relationship between government, employers and employees. The implication of an income tax is that you don’t really earn anything. It’s sinister as hell.

Look this tax would be dire for me. It would cost me an absolute fortune, but I’d pay it cause I work in tax policy and it is SO MUCH fairer than our current property tax system. Anything but the diabolical stamp duty. We’ve got to start changing taxes to make them fairer and boost growth. This is an excellent place to start and I will applaud Burnham if he has the balls to go through with it.

Then the government should be able to look at fancy cars, where you shop and your heating bills and make calls on your ability to pay extra tax. I saw you buy those special olives, extra tax for you. You seem to have jewellery that looks expensive, lets start a jewellery wealth tax. Where does it end?

I don’t think any asset tax is fair, because it fundamentally changes the relationship between government and private property. The implication of an asset tax is: you don’t really own anything. It’s sinister as Hell.

I don’t think any asset tax is fair, because it fundamentally changes the relationship between government and private property. The implication of an asset tax is: you don’t really own anything. It’s sinister as Hell.

I don’t think any asset tax is fair, because it fundamentally changes the relationship between government and private property. The implication of an asset tax is: you don’t really own anything. It’s sinister as Hell.

What asset tax do you think would be fair then? You can buy an asset if you like, but you ought to expect the government to look at that and think if you life in a big house you can afford to pay more tax than those who live in a smaller house.

The government has to raise money to pay for public services. It does so by putting taxes on earnings, rental income, dividend and capital gains, trust income, inheritance. It’s only fair they tax assets held too.

What asset tax do you think would be fair then? You can buy an asset if you like, but you ought to expect the government to look at that and think if you life in a big house you can afford to pay more tax than those who live in a smaller house.

The government has to raise money to pay for public services. It does so by putting taxes on earnings, rental income, dividend and capital gains, trust income, inheritance. It’s only fair they tax assets held too.

The Conservatives will be back with a huge majority - well in the SE anyway by the looks of things!

The Conservatives will be back with a huge majority - well in the SE anyway by the looks of things!