Author Topic: IMF's property tax hike proposal come true with UK imposing "mansion tax" as soon as this year  (Read 307 times)

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Offline rangerrebew

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« Last Edit: March 24, 2014, 02:30:23 PM by rangerrebew »
"Of all the dispositions and habits which lead to political prosperity, religion and morality are indispensable supports. In vain would that man claim tribute to patriotism who should labor to subvert these great pillars of human happiness -- these firmest props of the duties of men and citizens. . . . reason and experience both forbid us to expect that national morality can prevail in exclusion of religious principles."
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Offline Oceander

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Viz. the US: any federal property tax would have to be apportioned amongst the states in proportion to population (as per the census) because such a tax is a direct tax under Supreme Court precedent.

Offline rangerrebew

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Viz. the US: any federal property tax would have to be apportioned amongst the states in proportion to population (as per the census) because such a tax is a direct tax under Supreme Court precedent.

I'm thinking precedent doesn't mean as much as personal opinions in our legal system today.
"Of all the dispositions and habits which lead to political prosperity, religion and morality are indispensable supports. In vain would that man claim tribute to patriotism who should labor to subvert these great pillars of human happiness -- these firmest props of the duties of men and citizens. . . . reason and experience both forbid us to expect that national morality can prevail in exclusion of religious principles."
George Washington

"Only a virtuous people are capable of freedom. As nations become more corrupt and vicious, they have more need of masters."
Benjamin Franklin

Offline Oceander

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I'm thinking precedent doesn't mean as much as personal opinions in our legal system today.

Not so.  Not on a matter such as this.  It would have to be put in place much more indirectly than a mere ad valorem property tax.  One way, of course, would be to impose tax on the sale of real property in such a way that it was essentially a proxy for a hypothetical ad valorem tax imposed each year but not collected until the time the real property is sold or otherwise disposed of in a taxable transaction.  And yes, it can be done, even though the mechanics would be ugly:  the current tax code does something very analogous with so-called PFICs (passive foreign investment companies).

Offline EC

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Point one - I find it hard to give credence to a poster named Tyler Durden. I assume there is an agenda in the offing.

Point two - never heard of stamp duty? It's a tax. Based on the valuation of your home, not the market value, but the rateable value which is usually 20% higher. You pay it when you buy it or inherit it - and I'll tell you now, it goes through first. You could pay the vendor up front, in cash, but until the stamp duty is paid, the place is not yours.
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Offline Oceander

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Point one - I find it hard to give credence to a poster named Tyler Durden. I assume there is an agenda in the offing.

Point two - never heard of stamp duty? It's a tax. Based on the valuation of your home, not the market value, but the rateable value which is usually 20% higher. You pay it when you buy it or inherit it - and I'll tell you now, it goes through first. You could pay the vendor up front, in cash, but until the stamp duty is paid, the place is not yours.

I've heard of them all the time.  Let's don't start confusing the various taxing regimes.  The federal estate tax - about the closest we get to a federal property tax - is constitutional because it's regarded as an excise tax on the privilege of passing property on to heirs; that's why it's imposed on the estate and not on the heirs.  The states impose a variety of different taxes as well, most notably the annual property tax.  Assessment values for real estate under the various state regimes vary wildly; that variation doesn't really matter so long as all properties are assessed on the same methodology.  I.e., saying that the rateable value is usually 20% higher than market value doesn't really matter because the same amount of tax could be arrived at by applying a slightly higher tax rate to a slightly lower valuation.


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