The rising value of land means home ownership has become the equivalent of money laundering. It's time to tax it properlyby David Cooper / October 26, 2017 / Leave a comment
In the UK, profits on selling first homes are virtually tax free—a fact which means the UK economy suffers an impact equivalent to a £100bn annual currency counterfeiting operation.
Sound extreme? Winston Churchill’s budget speech of 1909 explains the situation:
“Roads are made, streets are made, railway services are improved, electric light turns night into day, electric trams glide swiftly to and fro, water is brought from reservoirs a hundred miles off in the mountains – and all the while the landlord sits still… To not one of these improvements does the [landlord] contribute, and yet by every one of them the value of his land is sensibly enhanced.”
Homeowners, we know, can increase the value of their property by erecting new buildings or improving existing buildings. But there is nothing the home owner can do to increase the value of the plot of land on which the buildings stand.