Published On: Thu, Nov 7th, 2013

UK has highest property tax rate in the developed world: The full story

Making property taxes fair both politically and economically is no simple task; should tax aim to reduce housing demand or increase housing supply?

Policy Exchange’s comprehensive “Taxing Issues?” report, which reveals that the UK has the highest rate of property tax in the OECD (twice the everage level), outlines the sticking points and options available.  

The best option, PE believes, is to leave it well alone and focus on sorting out planning policies to enable more houses to be build: “Politicians should focus on creating a housing and planning system that can deliver at least 1.5 million new homes between 2015–2020. Without this, calls for higher property taxation are likely to increase. But the message to politicians should be to focus on the creation and spreading of property ownership and wealth – not its taxation.”

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  1. A very comprehensive report that shows how absurd the points of view are when it comes to tax.

    It should be simple:

    - people have the right to own property and therefore the right to the economic value of that property
    - the state invests around that property (transport infrastructure, for example) which boosts the properties utility and value
    - the property therefore should contribute to the state

    The level of this contribution should then be based on the above and no other spurious reasons.

    Tax is not a tool to be used to ‘regulate’ the market. It’s absurd to think otherwise.

    When people stop thinking about tax as a regulatory tool, we can have sensible taxes that don’t discriminate.

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