The proposed mansion tax is a wealth tax, and wealth taxes are among the most pernicious and damaging of all taxes. The proposal is not to tax people for doing anything with a house such as buying it or selling it, but simply for owning it.
One of Adam Smith's canons of fair taxation is that it should be levied in a way that is convenient for the person paying it. A tax on rents should fall when the rent has been collected, he said...
Read the full article on Politics.co.uk here.
Dr Madsen Pirie writes on Politics.co.uk on the mansion tax. He argues that it is a wealth tax that is economically illiterate, damaging and divisive.