Mark Wadsworth: God Save The Gearchange

Saturday 2 June 2012

God Save The Gearchange

3 comments:

Macheath said...: Steve Race - in the book of the TV quiz 'My Music' - describes this interesting exercise to practise key changes: sing the national anthem beginning each line with the note on which you finished the previous one.

(Helpful hint; if you're trying this at home, start high.); 2 June 2012 at 15:42
Physiocrat said...: "2. Land/Location Value Tax is a tax on the rental value of land, and not just a blanket tax on "land" as it is wrongly portrayed by the Home-Owner-Ists."

We do not help ourselves when we advocate things like a 1% tax on selling prices.

Actually, the rental value of land is the residue of the rent payment after deduction of costs and charges associated with the building PLUS any recurring property taxes already payable.

If selling prices are used, the latter amount then has to be adjusted for. If not, it makes the value of land subject to UBR appear to be much lower than it actually is.

But equally importantly, the advocacy of CVs promotes misunderstanding of what LVT is.; 3 June 2012 at 08:11
Mark Wadsworth said...: McH, too difficult for me.

P, ah yes, but I'm good at maths and I know that any system of valuation, if applied intelligently and reclibrated every couple of years would lead to exactly the same results, it's just that the CV methods skip over lots of circular calculations in the early years.

As to your comment about "we do not help ourselves", people ask me "This shifting to LVT sounds quite interesting, but tell me Mark, how much would I pay instead of income tax, VAT, NIC, council tax and so on?"

I find that instead of waffling on about HOW it would be calculated it is much fairer to tell them that their LVT bill would be "about seven per cent" of the current selling price of their home.

Because by and large that is the correct answer.

Even if we calculate it a bit more scientifically and phase the tax in over a longer time period (which using rental values would necessitate) then the tax on an average sort of semi-detached house will be somewhere in the region of £14,000 a year (plus inflation).; 3 June 2012 at 09:55

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