To think that the new tax on £2m will eventually be harmful to ordinary folk?

[IwishIcouldski]

I'm concerned that the new tax on properties over £2 million will push more buyers toward homes below that threshold. Increased demand at lower price points could intensify competition at £1.5 million, £1 million, £500,000, £300,000, and so on, as buyers adjust their expectations downward in response to pressure higher up the market but still below the £2 million mark.

It also raises the question of who will actually buy the £2 million-plus homes. I can imagine many sellers pricing their properties just under £2 million to attract buyers, which could drive prices down at each prove level across the market. Meanwhile, some of the remaining £2 million homes may end up being purchased by the very wealthy or by landlords who convert them into multiple flats. There may need to be big drops in prices because when you buy, you would not want to be dragged into the £2m mark after a couple of years because of inflation.

I feel it will eventually harm ordinary people over time but the wealthy will be able to weather the storm.

But what was actually been happening is that businesses have done well, in a lot of cases, through exploiting workers - especially with zero hour contracts which give workers fewer rights & low NM wages.

When the NI idea came in last year the first thing large businesses did was throw that back on to workers or consumers through laying people off, not taking people on or putting up prices.
But the "people at the top" were still paid very handsomely and share holders were still recieving their dividends.

It's that kind of disparity, plus the general ever growing gap between rich & poor, that needs to be addressed.

However, it seems rght wing media outlets have done a stirling job of feeding us all many lines so that now even unaffected people are feeling badly about the poor old rich folks and their extra tax burden.

Note to self. Make sure that we do not encourage the next generation to be self sufficient. Let’s make sure that they have no aspiration or self belief.

Maybe send them to war instead ? That'd learn 'em.

My post was in response to people saying that people who aren't millionaires simply aren't aspirational enough as a reason why millionaires shouldn't pay more tax.

Seems like you're deliberately missing the point now.

Society is set up to benefit millionaires and billionaires, and to ensure that no matter how much a child in poverty might dream, it's gonna take a little bit more than just wishing on a star to become a billionaire. It's real life, not a Disney film.

Also did you know many people who claim benefits also work and they're forced to claim benefits because they don't get paid enough to live on? Because the money goes into the CEOs pockets.

Do you know who has plenty of money? That's right, millionaires. But they didn't earn it fairly. They earned it (presuming it was earned and not just inherited, allowing the recipient to loaf around all day for their whole life and do no work) on the backs of low paid workers. Even if not directly employed, who empties their bins? Who keeps the supermarkets going? Who grows the food they eat? Who cleans the helicopters? Who repairs the roads? Who cleans the bathrooms?

If rich people don't want to pay tax, because they don't want to pay a fair contribution to society, the working class should down tools for a bit. See how you get on then. We can live without millionaires quite easily.

I see the news is saying flood alerts have been issued in England and Wales.

So careful how you all go folk, if you live in such an area. Take care.

What has that got to do with the mansion tax ?

Well, a quick google shows UK guv have allocated 2.56 billion to flood defence projects.

The mansion tax will bring in 400 million.

Both of these numbers over X number of years.

Should those with more to lose, maybe be paying a bit more than others towards such things ?

🤣🤣🤣🤣

Well it's going to take a bloody long time for my house to worth £1m let alone £2m. Some of us live in the real world, my previous house, in Surrey, bought for £39k in 1984, sold for £335k in 2020, will fall down long before it reaches £1m., My current house, in Somerset, at a guess worth about £250k. You can by a massive detached house with land around here for less than £1m.

Yeah, not a problem for the vast majority & don't worry I'm sure this will be one of the first things to go if Reform or the Tories get in - replaced by a nice, hefty reduction in welfare payments.
And then normal service will be resumed & we can all breathe a collective sigh of relief 🙄

You could do quite a bit of improvement to a house and still keep it under 2 million. Anyway, you wouldn't be paying the tax, the next owner would.

Well, it seems those with 'the broadest shoulders' might end up in a workhouse because it's them who pay for everything.

Yep, that's how it will be for sure. Of course.

An extra £2500 a year for those living in huge houses earning high salaries is going to put them all just one step away from that potential workhouse. It's terrifying.

Aren’t you lucky you have that choice

But it's not 'just' the extra £2500. That's on top of everything else from the smorgasbord of tax.

And it's feudal tax.

It’s basically a family tax.

which means the people who incessantly post on here about "not having children if you can't afford them" are overjoyed.

Finally, a budget that listened to them.

It's ok I expect your cleaner will visit you in the work house.

Seeing as it's me who cleans the house, then yes, not only will she visit but she'll be living there as well.

Seriously, stop with the melodrama.
Unless you are one of the many people in this country who is just one pay check away from homelessness.

But given what you are complaining about I find that hard to believe. However, there are many people for whom that is true.
There is appalling wealth inequality in.this country and this thread which is about the tax on £2m houses has perfectly illustrated it and many people's attitude to it.
It's shameful

The only way to fix the inequality is to provide jobs and education opportunities.

Penalising working people and just giving money away won't fix it.

This.

Hurrah, ours insured for much less than £2m since the rebuild value of a property is always going to be lower than the market value.

Yep

True but following VAT on Private School fees, abolition of non dom tax it just sends yet another message of bashing the rich and taxing success and ambition. It's this hostile environment towards the the wealthy that is seeing large numbers of them leaving the country. Of course the left respond with good riddance and we don't care. But the top 1% of income earners pay 30% of all income tax revenue and the top 10% pay 66%.

Also in practice it won't even raise much money and may easily cost more to implement than it raises.

Looking at the numbers the OBR estimates that it will raise £400 million per year. There are 2.4 million houses in bands G, F and H that were last valued in 1991. Revaluing each of those houses at say an average cost of £500 each will cost £1.2 billion, plus if 50% appeal at another average cost of say £500 then that adds another £600
million.

So to raise £400 million a year will cost £1.8 billion to set up.

It seems that the left don't care if the poor get poorer so long as the rich don't get richer.

Not so! Our rebuild value for insurance was far more than we paid (and frankly more than it would actually cost to rebuild but they set the rate so 🤷‍♀️)

I thought Westminster was a wealthy council.