Homeowners should pay an annual levy worth 0.5 per cent of the value of their home instead of council tax, a Labour-leaning think tank has suggested. The Institute for Public Policy Research called for a 'proportional property tax' to tackle regional inequality - saying it was unfair that those who have benefited from soaring house prices should pay so little compared to the value of their homes. Under their system, someone living in a house worth £1million would pay £5,000. As well as replacing council tax, the new levy would also replace the stamp duty which people pay when they move house. The think tank said the move would lead to a fall in house prices of 3 per cent in London and other well-off places in the south. Mail.
Blogger: at first sight - this looks a worthy attempt to achieve fairness.
I am pretty ignorant in these matters, however, and am unsure as to what the possible hidden ramifications of this policy might yet be.
One problem definitely remains untouched, in that so many non-house owners - many of whom might be reasonably high earners - benefit significantly from Council services without actually contributing to any.
The Thatcher Poll Tax, designed to eliminate this unjust inconsistency, fell into tatters as a plan.
Maybe, local income tax has to be the answer rather than the PPR suggestion.
