Nahuh. Because the tax is levied on rental, not capital values. Indeed what has happened in the places it's been levied is that the base has shot up, because of the positive economic effects from replacing other taxes with this one leading to big improvements in land values, as people use the land more efficiently, and the place grows quicker. This has happened where the taxes have been only levied in a small locality and where they have been levied nationally.
(Original post by internetguru)
I agree with the elimination of income tax and VAT although I am still unsure about this whole ground tax thing. The estimates for the ground rent tax are probably incorrect as well, you would need to hire people to estimate ground values of all properties n the UK on an annual basis. Then you would have to factor in the reduction in income due to the lower land prices which would come as a result of ground tax increases.
As for the rest - no ****, of course we would with an army of civil servants and it most probably is a bit out - but I've explained the methodology I used elsewhere and I think it's a reasonable estimate from the evidence available - and probably about the best we're gonna do. If you want to go ahead and produce a fine bit of research on it then I'd sure welcome that - but considering you haven't yet understood how the tax works, then I doubt it's forthcoming.
Last edited by jesusandtequila; 01-08-2012 at 00:34.