To be scared of Labours Land tax

[Dragongirl10]

Just read about this, Labour are proposing a Land Value Tax on any land owned, could cost thousands a year for anyone even with a small house, not just the rich....they have not publicised this at all.

People with modest homes could be forced to sell or go into debt, or be repossessed...

And they'll get them alright, This. All the wealth will be redistributed across other countries!

Taxing those above £80K harder will not even begin to bring in the required revenue.

Those on much lower incomes - watch out. Particularly anyone on PAYE.

This sounds to me like people have taken a plan with no details, added some guessed info, and then gone bonkers over how they wouldnt be able to afford it.

Do you really think that any government would slap in a policy knowing that loads of people simply couldnt afford it? No government is going to bring in a policy that means that people will suddenly be faced with an outrageous bill they could never pay, what would be the point?

Taxing those above £80K harder will not even begin to bring in the required revenue.

Those on much lower incomes - watch out. Particularly anyone on PAYE.

If they are earning under the £80K so not in the 5% of top earners in the country they wont face further tax rises, its in the manifesto

Oh yeah. Because every party sticks to its manifesto. Especially one that describes "initial" tax rises

What do you think will happen when the inevitable happens and the tax receipts aren't enough?

Stormtreader

You think no government would bring in a policy that meant people would be faced by an outrageous bill.
Labour government. I think 1968
Roy Jenkins who raised taxes on income to an all-time record of 136 per cent

These penal rates were imposed on high earners during the 1968 economic crisis as a special income tax levy for one year only on "unearned income" or savings and investment returns.

John Whiting, a partner in accountants Price Waterhouse Coopers, said: "It meant a person with investment income of more than £6,000 would pay tax of 20 shillings and nine pence - or £1.04 today - for every £1 of income, while someone with investment income above £15,000 would pay total taxes of 27 shillings and three pence or £1.36 on every £1."
Bob Rothenberg, of accountants Blick Rothenberg, said: "People really did pay more than £1 tax on £1 income on some of their investment returns because the surcharge was announced retrospectively.

"Because every party sticks to its manifesto"

well, we all know one that doesn't.

And that makes labour more likely to stick to its manifesto how, piglet?

John McDonnell - Labour's Shadow Chancellor appears to have been campaigning for a land value tax for at least 10 years;
www.johnmcdonnell.org.uk/2007/03/bring-in-land-value-tax-to-replace.html

"As part of my platform for the Labour leadership, I'm advocating the replacement of Council Tax and business rates with a Land Value Tax. This is something long campaigned for by the Labour Land Campaign."

"Land is a gift of nature and its value rises according to the social and economic environment to which all of us contribute - yet only landowners benefit.
For example land values in East London have risen due to the Olympics, yet it is the investment of public money that has enabled the Olympics to take place and for land values to rise. A tax on land values will return some of this unearned wealth to the community and the income used to reduce or replace regressive taxes such as council tax."

One suggestion by The Labour Land Campaign is to take in lodgers to mitigate losses

"As implied already, the substitution of LVT for other taxes will result in winners and losers. In particular, LVT is likely to penalise people living in areas where the value of their properties had increased sharply over the years (due to rising land values), while their incomes had not grown proportionately, or perhaps had gone into decline if they had become pensioners or unemployed, or had been widowed. This could also apply to established businesses. However, this problem could be mitigated in a number of ways.
◾First, people – and also businesses – could decide to increase the occupation of the premises, for example, by taking in lodgers or sub-letting, or to relocate to smaller properties or to areas where land values were lower. This, indeed, is one of the long-term benefits of LVT – it encourages the better use of land."

You cant tax people money they dont have, any policy that simply isnt enforceable is pointless and would only foster bad will and rioting.

Except middle class people don't riot. They just suck it up and do things like not spending money.

More fool them then.

Justanotherposter - they only state that they won't raise income tax. There is no guarantee on NI contributions. They will be in office for 5 years what do you think they are going to do when they don't get the revenue from the 5%? The Land value tax is in their manifesto JM is huge supporter of it and it will raise them a lot of money.

All I hear is "they won't do that" once they are in power they will. People seem to forget they are extreme left-wing politicians. They believe in redistribution of wealth and it won't just affect the top 5%. They have run a brilliant campaign offering "freebies" to every section of society to ramp up their vote. It can't possibly be delivered.

They will be borrowing billions on the markets which will push up interest rates so our mortgages are set to increase.

I don't understand how JC can suddenly change his policy on "shoot to kill" and that is somehow just accepted. When TM makes changes she is totally vilified.

Ladyincement - that is exactly right.

Like I said earlier if you are going to vote Labour you must support their redistribution of wealth policy so, therefore, won't mind paying the LVT or anything else they impose.

Or is it a case that it is okay for someone else to pay but not me.

The Communist Party are supporting Labour in this campaign - surely that tells you everything you need to know.

"It is okay for someone else to pay" is what most left wingers than I know mean

StormTreader have you seen Clavinora's post. Makes very interesting reading.

Dandan - me too.

Well, I've certainly been convinced by the Conservative black propaganda.

A tax which is not in the manifesto will suddenly be announced, at a rate which is not in the manifesto, and will be in addition to, not in place of Council Tax, and charged at three times the amount. And this will be such a huge amount that nobody will be able to pay it. So town halls around the country will be swimming in four times as much money as they pull in today. Which they will not spend on public services. Except they won't get this money because nobody can afford to pay it.

Yep, that certainly makes sense.

Hooray to the Daily Express for suddenly realising all this a week before an election.

PigletJohn - the LVT is in the Labour Manifesto it is on Page 86 under Communities.

Have you seen Clavinova's post - JM explains how it will work and says there will be winners and losers. They would like people to take in lodgers to help pay for it.

PigletJohn - It will replace Council Tax and Business Rates

The Land Tax is mentioned on page 86 of the Labour Manifesto.

John McDonnell is the Shadow Chancellor;
www.johnmcdonnell.org.uk/2007/03/bring-in-land-value-tax-to-replace.html

What's the difference between "we will consider going on holiday next year, possibly abroad to somewhere like Marbella"
and
"We will spend £17,500 going to Marbella next year?"

I am puzzled by the suggestion that Clavinova has the power and the responsibility to set Labour policy. If this is true, why hasn't she done it?

Anyway, Dragongirl says we'll have our houses repossessed. I don't know why, since I don't have a mortgage with the government.

Maybe its those Communists that were mentioned.