tag:blogger.com,1999:blog-1141932539860553199.post1248041733570067789..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: Killer Arguments Against LVT, Not (357)Mark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-1141932539860553199.post-73115887071208988942015-04-04T13:47:22.526+01:002015-04-04T13:47:22.526+01:00R, correct.
B, that was Rantin' Stan who pre...R, correct. <br /><br />B, that was Rantin' Stan who presented first hand experience of that, and I have no doubt that it is true.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-84291898668922173202015-04-04T13:32:31.911+01:002015-04-04T13:32:31.911+01:00"An they do have a rent floor. It is called H..."An they do have a rent floor. It is called Housing Benefit."<br /><br />ISTR you demonstrating that, if you are not in receipt of HB, you can rent for less than those who are on HB (presumably due to the positive feedback effect of HB).Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-57906455310681952692015-04-03T16:12:57.777+01:002015-04-03T16:12:57.777+01:00MW, the effect is tiny and offset by Help to Buy, ...MW, the effect is tiny and offset by Help to Buy, etc.Randomhttps://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-56911027684827147762015-04-03T15:52:27.749+01:002015-04-03T15:52:27.749+01:00R, I dislike VAT, NIC and higher rate income tax j...R, I dislike VAT, NIC and higher rate income tax just as much as I like LVT. <br /><br />An they do have a rent floor. It is called Housing Benefit. <br /><br />Interestingly, the Tories shot themselves in the foot here. <br /><br />They were so keen to have a total welfare cap of £26,000 but they didn't realise that this is primarily a cap on housing benefit. There are only a couple of dozen families in the whole country who get as much as £26,000 excluding Housing Benefit. Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-50559859681963763452015-04-03T15:05:36.023+01:002015-04-03T15:05:36.023+01:00Mark, I am surprised the Homeys have not implement...Mark, I am surprised the Homeys have not implemented rent floors.Randomhttps://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-85894392077828274802015-04-03T15:03:42.116+01:002015-04-03T15:03:42.116+01:00Beside, with 100% LVT, will there be many landlord...Beside, with 100% LVT, will there be many landlords? It is a non issue.<br />It depends though if the govt just implements LVT and does not reduce other taxes. If it does the other taxes will reduce rents as ATCOR? (All taxes come out of rents)Randomhttps://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-90366310457361723622015-04-03T14:49:34.223+01:002015-04-03T14:49:34.223+01:00R, we prefer to avoid those arguments.
Observatio...R, we prefer to avoid those arguments.<br /><br />Observation tells us that this is true. Without rent caps, if you reduce income tax etc then rental values will go up accordingly. <br /><br />But on the Homeys first deny that this effect exists and in the next breath, they will say "landlords will just add the LVT to the rent". Which in a roundabout way is correct (in the absence of rent caps).<br /><br />Well perhaps they would, but who cares, if the income tax saved by a tenant is on average twice as much as the rent increase?<br /><br />Interestingly, according to a recent poll, <a href="http://nchbulletin.blogspot.co.uk/2015/01/public-support-for-rent-controls-but-no.html" rel="nofollow">59% of people support rent controls</a>, and I bet that among YPP's target voters, support is much higher than that.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-43201263327655433392015-04-03T14:40:18.047+01:002015-04-03T14:40:18.047+01:00BJ - It is quite a significant effect, no?BJ - It is quite a significant effect, no?Randomhttps://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-58545759555563726232015-04-03T13:04:03.648+01:002015-04-03T13:04:03.648+01:00BJ, exactly and you're right, it is not partic...BJ, exactly and you're right, it is not particularly relevant.<br /><br />R, yes, the Bedroom Tax and the Mansion Tax are sort of the same thing, only one is for council tenants and the other is for owner-occupiers. <br /><br />So the lefties are up in arm about the former and the Homeys are up in arms about the latter.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-17305749524609497862015-04-03T12:50:53.042+01:002015-04-03T12:50:53.042+01:00@ Random
No, not forgetting, just postulating whe...@ Random<br /><br />No, not forgetting, just postulating whether it's even relevant or not.<br /><br /><br /> benjhttps://www.blogger.com/profile/11544297406005346095noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-89440394092472159492015-04-03T03:00:43.563+01:002015-04-03T03:00:43.563+01:00http://www.theguardian.com/commentisfree/2015/apr/...http://www.theguardian.com/commentisfree/2015/apr/02/bedroom-tax-cuts-council-tax-support-poor-people<br />KLN.Randomhttps://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-16007914349411518512015-04-03T02:48:00.357+01:002015-04-03T02:48:00.357+01:00BJ, you are forgetting reducing other taxes increa...BJ, you are forgetting reducing other taxes increases the value of land. 100% LVT would likely raise more revenue than the current tax system.Randomhttps://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-11042910785420170492015-04-02T22:32:55.447+01:002015-04-02T22:32:55.447+01:00"However, by allowing some of the value of sp..."However, by allowing some of the value of spillovers to be captured, higher land values provide real estate developers, businesses, and even households with incentives to create them."<br /><br /><br />The rental value of land is the surplus not needed to put Land to it's highest productive use.<br /><br />It is only the amount someone is prepared to pay to exclude others from it's productive surplus. So these businesses don't need the incentive of free rent. Quite the opposite in fact. <br /><br />Again, supply is created. As Land is supplied free by nature, demand for it is merely shifted. Land is not "created" and neither is demand for it. <br /><br />If we took all of todays UK taxes and converted them into a LVT, we'd get a 300% LVT.<br /><br />Leaving to one side the efficiency gains from eliminating taxes from income/capital, would a 300% LVT have any negative consequences?<br /><br />I say no, because people are in effect already willing to pay this pro rata out of their after tax income.<br /><br />It's just a lumpsum tax, people are already willing to pay.<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />benjhttps://www.blogger.com/profile/11544297406005346095noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-39121610588358684142015-04-02T19:58:12.417+01:002015-04-02T19:58:12.417+01:00M, excellent point, I forgot that one in my rage a...M, excellent point, I forgot that one in my rage and have updated the post.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-27652120024482056442015-04-02T16:35:03.503+01:002015-04-02T16:35:03.503+01:00Well the root of the problem with this article is ...Well the root of the problem with this article is that it's going after 100% LVT. You don't need 100% LVT to get rid of all other non-pigouvian taxes, right MW?mombershttps://www.blogger.com/profile/09650866436764567516noreply@blogger.com