In article , Huge
writes
"Owain" writes:

What about removing residency and spousal inheritance exemptions from CGT
and replacing Stamp duty and allowing a tax-free gain in value per annum
equal to the bank base rate, compounded annually. Any gain in value above
tax-free gain taxed at 80%.

Yes, why should those damn property owners make any money? Take it off
them! Confiscate it!


You seem to be festering in an illusion that house prices can keep on
rising at rate that is many times the RPI and that somehow this is a
good thing and can go on for ever. Ask an engineer or biochemist what
happens when an amplifier or a biological process loses its negative
feedback - disaster, and so it is, will be, and has been with the
housing market. The next 'correction' will be as nasty as any in the
past. In the absence of common sense amongst the house-buying great
unwashed, the only negative feedback is one of
1) higher interest rates (which we have had in the past under Lab and
COn)
2) Higher unemployment (had that too under lab and con)
3) Restrictions on what you could borrow (Wilson /Callaghan loved that
one - MAggie scrapped it).
4) Sudden cut in population (plague, flue, sars, meteorite)

If businesses are taxed on assets as well as profits, we should the
silly smug house-owner be exempted.
If the banks can be hit with windfall profits taxes so can we.
Don't forget the re-rating due in 2006 - those of you dreaming of how
much your house is 'worth'.
--
Andrew