But the point is that many of the publicly funded amenities that add significant value to privately owned urban properties simply aren't available in BallygoBackwards!If the tax is to offset the cost of delivering those services, they’re cheaper to land into my site than the one in BallygoBackwards
But the point is that many of the publicly funded amenities that add significant value to privately owned urban properties simply aren't available in BallygoBackwards!
There's no airport/concert hall/sports stadium/public park, etc. in BallygoBackwards.
So if publicly funded amenities create private value, the fairest way of paying for the cost of maintaining those amenities is to recoup an element of that value from those who benefit most.
Well, I don't agree that property taxes along the lines of the LPT are a good idea because they act as a disincentive to improving existing dwellings, etc. In other words, property taxes are not efficient from an economic perspective - they produce outcomes that are not in the common good.Property tax should be about funding local services and nothing else.
Have the public funds that have been expended on Dublin airport created the same private value for a farm in BallygoBackwards as a house in, say, Glasnevin?
LPT is set by the Goverment (with a somewhat ridiculous tweak at a local authority level) and is then collected centrally by Revenue, not by my local authority.Just to be clear, all LPT goes to the 31 councils, not the central government.
You don't really believe that, do you?Dublin airport has nothing to do with the value of houses in Glasnevin
I mean it's not a genuine local authority tax. It's dressed up as a local tax but is levied and collected at a national level.I don't know what you mean by "window-dressing".
You don't really believe that, do you?
What do you think would happen to property values in and around Dublin airport if the airport had to be relocated for some reason? Would the loss of local jobs have zero effect on local property prices?
Of course publicly funded amenities impact private property values!
A house in East Wall may well be cheaper than a house of a similar size and specification in Clontarf (which I would suggest has better publicly funded amenities) but it would still be a heck of a lot more expensive that a similar house in the wilds of Donegal.
A site-value tax wouldn't be linked to "some tenuous valuation of certain amenities".I’m not sure I agree with the logic of linking a tax with some tenuous valuation of certain amenities that may or may not add value and may or may not have been privately funded.
A site-value tax wouldn't be linked to "some tenuous valuation of certain amenities".
It would be calculated on the basis of the unimproved value of the relevant land.
The fact that publicly funded funded amenities add to the value of that privately held land is really not the key point that a site-value tax is preferable from an economic perspective to a property tax such as LPT.
I've now made that point three times. Any chance we could move on?
What strawman argument?
Obviously an ad valorem site-value tax would be progressive in nature. Same as income tax.
Surely you're not arguing for a flat property tax regardless of the value of a property? Seriously?!
Bear in mind that I'm arguing in favour of a site-value tax in place of a property tax such as LPT. But even LPT is based on the value of a dwelling. Do you object to that? Should LPT be applied at a standard rate to every dwelling regardless of the value of the dwelling?
That logic seems totally bizarre to me.
My key point is that a site-value tax is more efficient economically than a property tax along the lines of the LPT.
Don't forget It was your generation who borrowed and paid up to 14 times there yearly wages for houses that got Ireland into trouble in the first place,In the longer term property taxes reduce house prices. They also encourage empty-nesters to move out of family homes which can then be occupied by families. The social infrastructure, particularly schools, doesn't have to be duplicated around the country as often etc.
They enjoy State pensions and perks which their children and their grandchildren won't even dream of. When their private pension funds would have been wiped out after the financial crisis their children and grandchildren bailed them out. When their savings were threatened their children and grandchildren guaranteed them. If they bought their house during a period of high taxed and high interest rates then they also bought during a period of very low prices and high inflation. Their children and grandchildren could have their own big garden to play in every day if more older people downsized.
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