In message , Doctor Drivel
writes

"djc" wrote in message
...
On 14/03/12 19:39, Adrian Simpson wrote:
In article , hugh
] writes
Revaluation should only take place when a property is sold IMO. That
is the only point at which the value of the property has any
relationship with your income.

Most of the houses in my street were built in 1939. Up until 5 years
ago, one of them was still lived in by its original occupant. How would
you have valued that one ?

Why not on its 1939 value. It reflects what the owner could afford in
1939. If they stayed there all that time then : it had not *in their
view* appreciated vis a vis any alternative accommodation they could
afford; if it had they could have moved home and realised the implicit
capital gain.

In 1939 it probabaly costed £500, now maybe worth £500,000. What have
they done to earn that 0.5 million?
NOTHING.
They haven't gained a penny until they actually sell the house - then
they have to buy somewhere else to live. Alternatively their estate will
be liable for inheritance tax eventually.
Where did the value come from?
From economic growth by community acitivy. That is where land values
come from -not the sky. Land Value Tax "reclaims" that community
waelth to pay for community services. But then no Income tax, VAT, etc.
No one takes your private wealth.

Taxing the hosue on the annual land "value", not the house value, will
be very fair.


How do you define fairness?
--
hugh