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Stamp Duty & Council Tax an Unfair Assumption of Wealth

Comment 6th July 2010

Both Stamp Duty & Council Tax assume someones wealth according to their home.

This isn't a true reflection. Wealth should be measured by earnings & taxes raised against earnings.

If two people earn the same but one spends his money on holidays & drink the other on improving his home. The home builder is taxed more on his Council Tax. Not fair.

If they were both to move it is reasonable to assume that they will move to similar standard properties they left. The home builder will be taxed more on Stamp Duty. Not fair.

A household with 5 earners will pay the property based Council Tax bill between them = 20% each. A single person in a similar property will be hit with 75% of the bill, almost four times as much. Not fair.

In these days of uncertainty & the need for people to move where work is available the average working man can be forced to move several times in his career. Paying Stamp Duty at every move. Not fair.

The super rich rarely have to move for work so wont be caught with the same multiple Stamp Duty bills.

Personally I would rather see taxation on earnings & on VAT, a reflection of my ability to pay.

If you earn it you will someday spend it so you will pay VAT.

Centrally collected income tax & VAT would be simply transfered to local authorities from central government, payment based on each head of population on the voting register. Replacing Council Tax.

The whole Council Tax & Stamp Duty gathering infrastructure / cost would be eliminated.

Why does this matter?

The principle of fair taxation is key to any society. Too high a tax burden is a demotivator & has the ability to create conflict.

Today's economy requires a flexible & portable workforce. Stamp Duty is a disincentive to moving to new jobs.

Retired people are being taxed on the basis of the value of a property they bought many years before & that does not reflect their present income & ability to pay.


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