Very interesting and pragmatic change-proposals to some important taxes - the introduction of property tax instead of stamp duty and insurance payments! Mainly it can be a change of perspective - paying an ongoing tax vs one-off tax at the time of purchase. Many would like to keep away from an ongoing tax while more positive about one payment.
http://www.abc.net.au/news/2017-10-09/why-your-council-rates-should-be-three-times-higher/9030330?section=business
Tax reforms are actually aimed at increasing tax revenues under some pretext.
Unfortunately, this always affects the mass taxpayer - the ordinary people.
Тхе people with low incomes who own valuable property are actually forced by their homes but receiving their real selling price.
If there are no taxes, and the whole charge is taken in the sale, will this not turn into a hidden nationalization of the property?
This has already been done with socialism.
The current tax law is favorable for home purchases, since it allows an interest deduction on a home mortgage. This deduction allows for a tax refund which increases affordability.
The tax treatment of housing is not uniform around the world. Most countries do not allow for mortgage interest deduction as it would give preference to owner-occupiers over renters. The Netherlands is phasing the deduction out, but the US is keeping it under the tax reform proposals of the Trump Administration. However, the US area exception globally. The most important tax in the US is the property tax which is a tax levied by local authorities. The burden varies, but generally it is quite high. Indeed, in some states it is so high that people upon retirement when income goes down, have to sell and move to states with lower taxes.
The lowest income groups can often not afford buying a house and rely o renting for which there are no direct tax benefits. The reason for stimulating home ownership through a tax deduction of mortgage interest is the notion that ownership leads to responsible actions.
We should, in my mind, not treat the issue of affordable housing as merely a tax issue. Best would be to ensure that people improve economically, so we need measure that allow for social-economic mobility, or which remove obstacles. To help the lowest income groups, I would think that a high exemption bracket for income tax would be the easiest way. The US tax reform proposals doubles the income tax free exemption which is a good idea.
The topic is very interesting. Of course, one-off tax is preferable, but regrettably, central governments and regional governments need a steady flow of fresh money. So the idea of the ruling people for a one-time tax would not like them.
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