HOW MUCH WILL I PAY? THE COST OF THE MINI-LVT TO HOME-OWNERS

So the bargain is this: Next time you buy a house, you won’t pay Stamp Duty. Instead there will be a much smaller annual charge based on the value of the plot. 

A rate of one-third of one percent (0.3%) of the Land Value would do the trick. This would keep the same amount of tax revenue for the Chancellor, eventually, after a few years.  

Well, not quite, but this is a dynamic tax geared to rising land prices. And don’t forget the good part of this switch—getting rid of Stamp Duty on house purchases, probably the worst tax there is, certainly one of the most hated.

But what about its replacement? Here’s what mini-LVT looks like for average-priced houses in different parts of England:

Area	Average £price of house	Implied LV	Proposed annual LVT at 0.3%	Old £SDLT (1-off)
Cluster*	150,000	30,000	£90	500
East Anglia	220,000	100,000	£300	1,900
South West	230,000	110,000	£330	2,300
South East	350,000	230,000	£690	7,500
London	500,000	380,000	£1,140	15,000

*‘cluster’ means everywhere outside London and the Home Counties

 “land value tax faces large political obstacles”

So says a new publication from Civitas, an independent UK think-tank. This statement of the bleedin’ obvious comes at the end of very good chapter extolling the virtues of LVT. So what’s their answer to overcoming political obstacles?

Hand over development rights to Local Authorities:—

“remove from landowners their ability to withhold land in pursuit of more favourable circumstances and a higher sale price at some point in the future. This could be achieved by enabling the public sector to purchase land that is designated for new housing at close to its existing use value” 

 Pure funk! If we can’t do the right thing then let’s try some cack-handed largely untried Scheme instead!

IT'S TRUE. BUILDING MORE HOUSES WON'T BRING DOWN PRICES ANYTIME SOON.

So says Oxford Economics, ‘Forecasting UK house prices and home ownership’, November 2016

Here's what they say:

BRILLIANT ARTICLE IN THE IRISH TIMES!
How Japan introduced LVT and won!

Want to fix the housing crisis? Tax land. Ireland needs to follow radical example of Japan’s 19th-century ‘Meiji Restoration’

In 1860 Japan was isolated, feudal and weak. It was an obvious next commercial target for avaricious westerners. If India and China could be enfeebled by imperialists, what chance had remote Japan?

But Japan didn’t go the way of China. By 1900 Japan had become the most advanced independent nation in Asia. By 1905 it was trouncing the Russians on the battlefield. How?

STAMP DUTY BLOCKING 45,000 PROPERTY PURCHASES A YEAR
but only if Stamp Duty completely abolished!
Switch it to a mini-LVT and it would work

ABOLISH DEATH DUTIES and replace (some of?) them with LVT _revised

What a wicked idea! Abolish Death Duties, officially called InHeritance Tax—IHT. By definition, dead people have no more use for their wealth. If you are lucky enough to inherit wealth, you got to admit that you’ve done nothing to earn it.

INDUSTRIAL CAPITALISM WILTS WHILE THE 1% RENTIER ECONOMY FLOURISHES

Michael Hudson writes a long but very well argued piece (19 Oct 2017) on this topic "Socialism, Land and Banking: 2017 compared to 1917" He says

• " the world has un-taxed land rent and is still grappling with the problem of how to keep housing affordable. Instead it is siphoned off rent to a landlord class – more recently transmuted into mortgage interest paid to banks by owners who pledge the rental value for loans. Most bank lending today is for real estate mortgages. The effect is to bid up land prices toward the point where the entire rental value is paid as interest.

and   the only way to save society from the financial power [is] a policy of          

•             nationalizing natural resources,
•             fully taxing land rent
•             and [nationalising] infrastructure and other key sectors.

Note the need to fully tax Land Rent.

You can read the full article here (wonkish and marxist!)
http://thesaker.is/socialism-land-and-banking-2017-compared-to-1917/