tag:blogger.com,1999:blog-109955382024-02-11T20:44:23.602+11:00Site Rating Defence AllianceThis blog is of supportive statements to the cry made by Home-owner’s to 'Stop The Annual Taxation Of Houses' by Local Governments. Instead rate the land value they sit on! Annual site value rating of land, prevents involuntary poverty, unemployment, territory conflict, economic decline, land price debts, labour & capital taxes. Further evidence of the inherent economic justice of this philosophy or your comment posting is welcome. {:DUnknownnoreply@blogger.comBlogger389125tag:blogger.com,1999:blog-10995538.post-42523819921959630032009-10-12T15:48:00.009+11:002009-10-12T16:56:55.279+11:00I've been longing for good news and it's the Irish that bring it.<a href="http://www.blogger.com/post-edit.g?blogID=10995538&postID=4252381992195963003"></a><blockquote>I posted this comment in 'Smart Taxes Network' comment section. I may have rattled on a bit as an article comment, but it is in context. I'm sure you'll agree, this decision by the Fianna Fail and Green Party coalition is great news, for Ireland. What wonderful work the economist Dr Constantin Gurdgiev must have done to persuade those in politics who are normally kicking and screaming and hissy fitting on this issue.
<span style="font-style:italic;">
</span></blockquote><blockquote><span style="font-style:italic;">Many in Ireland and elsewhere would know the adage known as Murphy's law
</span></blockquote><blockquote><div style="text-align: center;"><span class="Apple-style-span" style="font-style: italic; ">I never had a slice of bread,</span></div><span style="font-style:italic;"><div style="text-align: center;">Particularly large and wide,</div><div style="text-align: center;">That did not fall upon the floor,</div><div style="text-align: center;">And always on the buttered side.</div><blockquote>
</blockquote><blockquote style="text-align: left;">The law's name supposedly stems from an attempt to use new measurement devices developed by the eponymous Edward Murphy.</blockquote><div style="text-align: left;">
</div></span></blockquote><blockquote style="text-align: left;"><span style="font-style:italic;">A further iteration has evolved to that of "Dora Murphy's Law".</span></blockquote><blockquote><span class="Apple-style-span" style="font-style: italic; ">In the Lands tribunal for Northern Ireland Belfast Dec 1988 Dora Murphy did challenge the imposed NAV tax increase.</span></blockquote><blockquote><span class="Apple-style-span" style="font-style: italic; ">In evidence the District Valuer assessment tax increase was specified as being attributed to her improvement. "full central heating now valued".</span></blockquote><blockquote><span class="Apple-style-span" style="font-style: italic; ">As with windows, chimneys, a second storey, the history the world over is full of examples where behaviour is changed as a consequence of taxes on peoples dwellings and commercial premises.</span></blockquote><blockquote><span class="Apple-style-span" style="font-style: italic; ">In Dora's case to validate her claim, of tax gouging, she made comparison with surrounding dwellings on their improvements for the court to further waste its time. It is this self reinforcing process of tax justify's tax. Because the tax is legal any and all forms of inquiry into the behaviour of making improvements is justified by due process of the courts. Now the neighbour's assessment's are brought up to date with supplementary valuations as to the quality of their improvements so the tax collection process is self reinforcing by the 'disclosure in proceedings' of neighborhood improvements.</span></blockquote><blockquote><span class="Apple-style-span" style="font-style: italic; ">Herein proves that taxes maybe legal but they are not moral as the change in the behaviour as a consequence of the impost is self evident and to the detriment of the locality as they detract from performing maintenance. Cornered public officials do not dispute this reality. Many in private conversations with me and as a response to providing public revenue modeling services, even going as far as to say: "the imposition of taxes on production and consumption at any level is a political decision not an economic one".</span></blockquote><blockquote><span class="Apple-style-span" style="font-style: italic; ">Dora Murphy's Law is I guess, "If I'm been taxed, then so shall you be!"</span></blockquote><blockquote><span class="Apple-style-span" style="font-style: italic; ">So we all know what needs to be done. RATE THE SITE RENTAL OF LAND. </span></blockquote><blockquote><span class="Apple-style-span" style="font-style: italic; ">Buildings aren't rented they are hired by occupants. And taxed by governments and the people in them and that has to stop if an economy is to be achieved instead of the maintenance in public policy of the monopliconomy.</span></blockquote><blockquote><span class="Apple-style-span" style="font-style: italic; ">Ninety-five percent of public revenue systems that are attributed to the land ie Land Tax, are a quasi title-holding tax for some, while the majority of land in district is exempt from contributing to the public purse due to political engineering for perceived rights of some at the expense of the majority who don't enjoy the same privilege.</span></blockquote><blockquote><span class="Apple-style-span" style="font-style: italic; ">Now in 2009, the time has arrived where spacial mapping overlay to revenue analysis can measure what is the suppression of economic activity as a consequence of building taxes to the private stock. The genuine economic behaviour of the populous as a consequence of tax policy is measured in the tens of millions of dollars on the dwelling values in the hundreds of millions of dollars at the municipal level.</span></blockquote><blockquote><span class="Apple-style-span" style="font-style: italic; ">The profession of this industry is termed economology to show that economics is a taxed based society where economology is a rent as revenue based one.</span></blockquote><blockquote><span class="Apple-style-span" style="font-style: italic; ">Watch the indicators in the <a href="http://smarttaxes.org/2009/10/11/site-value-tax-in-programme-for-government/">region</a> where this site value revenue measure is being implemented as history will show over the next 10 years it will outperform neighbouring locales which do not enjoy the same level of economy.</span></blockquote><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-1468835395889391022009-08-05T05:49:00.000+10:002009-08-05T06:10:32.596+10:00New Reading List<div xmlns='http://www.w3.org/1999/xhtml'>Municipal Origins History of Private Bill Legislation by F.H Spencer 1911<br/>The Blue Book: Classification and Incidence of Imperial and Local Taxes 1899<br/>Prof Edward Cannan's:History of Local Rates in relation to the Proper Distribution of the burden of taxation. see also of interest, The History of Local Rates in England 1895<br/>The Economic Policy of Colbert by A.J Sargent, M.A., 1897<br/>The English Peasantry and the Enclosure of Common Fields by Gilbert Slater 1906<br/><br/><div class='zemanta-pixie'><img src='http://img.zemanta.com/pixy.gif?x-id=f8e231b7-187b-8cc1-8772-0b69c504d83d' alt='' class='zemanta-pixie-img'/></div></div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-32160283189301379462009-08-05T04:52:00.000+10:002009-08-05T04:52:01.220+10:00Capital Value Rating tax to Come under Public Scrutiny<div xmlns='http://www.w3.org/1999/xhtml'>Re-editted: <a href='http://infonews.co.nz/news.cfm?l=1&t=97&id=28537'>Capital Value Rating <font color='#009900'>tax</font> to Come under Public Scrutiny</a><br/>By Far North District Council <br/><span class='mydate'>2 October 2008, 7:29PM</span><br/>NORTHLAND<br/>A major initiative is about to be launched to engage the community in a comprehensive review of the Far North District Council's <font color='#009900'>land value</font> rating policies.<br/> This will be the first detailed analysis of the council's predominant funding base since the government's rationalization of territorial authorities in the Far North in 1989.<br/> The review will look at the advantages and disadvantages of both the current system based on land values and the new preference <font color='#009900'>of the vested interest</font> signaled earlier this year for a change to <strike>capital value rating</strike> <font color='#009900'>building taxes</font>.<br/> The council's <font color='#009900'>has no</font> intention <strike>is</strike> to establish a fair and equitable rate collection system which recognizes <b>the</b> economic and social diversity of the Far North and the community's ability to pay <font color='#009900'>by the choice of location preference.</font><br/> Step one of the process will be to set the scene for a <strike>new rating</strike> <font color='#009900'>taxed</font> environment and stimulate widespread community <strike>discussion</strike> <font color='#009900'>confusion</font> on the range of <strike>options</strike> <font color='#009900'>taxes</font> available, including options for the use of targeted <strike>rates</strike> <font color='#009900'>taxes</font> and differentials <font color='#009900'>carte blanche</font>.<br/> Step two will be to refine a firm proposal for inclusion in the <font color='#009900'>democratic</font> <strike>public consultation</strike> <font color='#009900'>ignoring</font> process which forms part of the Long Term <strike>Council Community Plan review</strike> <font color='#009900'>global public administration the world over.</font><br/> Community <strike>discussion</strike> <font color='#009900'>indoctrination</font> papers outlining the <strike>options</strike> <font color='#009900'>mechanics of boffins</font> are being prepared, including a website link through which people can look at the <font color='#009900'>deminishing</font> rating scenario <b>on</b> <u>their</u> own properties under both Land Value and Capital Value options, <font color='#009900'>where historically every council prepared analysis corrupts the figures to secure diversified revenue source, whereas the community has only one limited recourse & is ineffectual in the long term.</font><br/> The comprehensive <strike>consultation</strike> <font color='#009900'>avoidance, evasion,misrepresentation, subterfuge</font> programme will be <font color='#009900'>openly control </font>to community feedback throughout November.<br/> Revenue & Policy Manager Chris Ellington says the intention is to settle on <font color='#009900'>Capital tax base</font> <strike>a sustainable rating</strike> policy which complies with legislation and which satisfies the majority of <font color='#009900'>landbanking, Real Estate speculators,pen pushing accounting, lawyers, finance</font> <font color='#009900'>engineers</font> of ratepayers.<br/> "The main <strike>feature</strike> <font color='#009900'>game</font> will be a<font color='#009900'>n imposition</font> <strike>consideration</strike> of a change in the general rate base from land value to capital value <font color='#009900'>tax</font>. <strike>But</strike> we will <strike>also be looking at activities which might better be</strike> fund<strike>ed</strike> by targeted <font color='#009900'>taxes</font><strike> rates</strike>, how the <strike>Uniform Annual General</strike> Charge <strike>(UAGC)</strike> component <strike>might be changed and how general rate</strike> differentials <strike>might</strike> <font color='#009900'>will</font> be applied," he said.<br/> "We want to finish with a robust, transparent, practical, fair<font color='#009900'>y</font> and equitable rating system that will carry the council into the future.<font color='#009900'>Trust me, no really trust me because I care.</font><br/> "Whatever system is finally adopted must relate to the district as a whole, acknowledging that there will be <font color='#009900'>slum induced</font> impacts on some properties which cannot be universally addressed. The test will be to keep anomalies <font color='#009900'>hidden</font> to the minimum <font color='#009900'>favoured few</font> through the use of targeted <font color='#009900'>taxes</font><strike>rates</strike> <font color='#009900'>and A. Hitler like</font> differentials, <font color='#009900'>while</font> <strike>without</strike> <a href='http://www.amazon.com/gp/feature.html?ie=UTF8&tag=twiamp3-20&docId=1000371251'>creating</a> a <a href='http://www.fndc.govt.nz/services/fees-and-charges-index/rate-charges-20092010#a0'>formula</a> so complex it will be impractical to administer," he says.<br/> There has been a progressive shift in recent years <font color='#000000'>on </font><font color='#009900'><font color='#000000'>how</font> land price through the absence</font> <font color='#009900'>of</font> rates are impacting on <strike>different sections of</strike> the <font color='#009900'>economic</font> community, driven by increasing property <strike>valuations</strike> <font color='#009900'>prices</font> and a<strike>n expansion of residential subdivision in both urban and rural areas</strike><font color='#009900'> locking away prime home sites</font>. The particular <font color='#009900'>pump primed </font>problem to emerge has been the huge variation in these land <strike>valuation</strike> <font color='#009900'>price</font> increases.<br/> "This was brought strongly to attention in the 2007 revaluations which produced rate increases for many properties in the west and north of the district, while eastern areas enjoyed some rating relief. Less than a cent in the dollar, while income tax and payroll and gst stole the property of wages 680 fold greater times in quantum.<br/> "The reality is that a general rate system based on land value is always going to be subject to big swings in the level of <strike>rates</strike> <font color='#009900'>prices</font> on <font color='#009900'>in</font>different<font color='#009900'>ce</font> <font color='#009900'>to the evidence</font> <strike>properties</strike> . The impact of revaluations is much less marked with a capital value base," he says <font color='#009900'>because it corrupts the process</font>,<font color='#009900'>you can't value that which is annually being taxed. As window, chimney, attached, C of O, 2nd storey yet planned 3rd story dwelling demmonstrate the world over, taxes on the activity of people is the power to destroy.</font><br/> "At issue is whether a capital value <strike>rates</strike> <font color='#009900'>tax</font> base is a better option, more closely reflects <b>the principle</b> of user pays and better recognizes the <a href='http://www.amazon.com/gp/feature.html?ie=UTF8&tag=twiamp3-20&docId=1000371251'>ability to pay</a>, or whether a land value base can be satisfactorily modified with the tools available under existing legislation to better reflect what the majority of the community expects of a rating system. To loaded to amend speaks for itself, just read the history of polls. NZ is special in this regard.<br/> "The arguments <font color='#009900'>(but not access to uncorrupted data for modeling)</font> for and against will be discussed in the consultation programme which will go out to the community next month (November)," he says. <font color='#009900'>Expensive Waffled disinformation.</font><br/> Among other issues which the review will address are:- <font color='#009900'>to confuse matters further.</font><br/> How some costs might be funded by those who benefit the most i.e. how extensively should the 'user pays' principle be applied and to what activities and services? Why do we have to pay for services we don't use? How should cost be shared between different sectors –i.e. the potential for differentials between commercial/residential/farming/tourism land uses? Is a UAGC necessary? Should there be a targeted rate for roading? Should there be targeted rates for waste management/stormwater/sewerage/water? Should ward rates be included in the general rate? Following this argument the train traveller is the beneficiary not the store holder out front of the station. See the above link for the original ability-to-pay in taxation theory was espoused before neo conservatives got a hold of the phrase. Like many others, common ground, middle ground, safe as houses, draw a line in the sand. etc<br/>- <a href='http://www.stuff.co.nz/taranaki-daily-news/news/2716637/No-jobs-for-youths-say-bosses'>No jobs for youths, say bosses</a><br/>- <a href='http://www.stuff.co.nz/taranaki-daily-news/news/2712800/Elderly-silent-victims-of-recession'>Elderly 'silent victims' of recession</a><br/><br/><div class='zemanta-pixie'><img src='http://img.zemanta.com/pixy.gif?x-id=9231d1ca-fe5a-8481-bd42-07028010bbed' alt='' class='zemanta-pixie-img'/></div></div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-10995538.post-8971323859737733242009-07-13T05:59:00.000+10:002009-08-05T05:52:46.724+10:00Reading List 13/07/09<div xmlns='http://www.w3.org/1999/xhtml'>Tax Research UK » Tax injustice in the UK<br/>By Richard Murphy<br/>Council tax is blatantly regressive. So is VAT, as overall are indirect<br/>taxes as a whole. Is it any surprise that the Big 4 firms, the Institute<br/>for Fiscal Studies and other big business lobbying groups are so keen on<br/>them? ...<br/><http://www.taxresearch.org.uk/Blog/2009/07/30/tax-injustice-in-the-uk/><br/>Tax Research UK<br/><http://www.taxresearch.org.uk/Blog/><br/><br/>Tory Jacob Rees-Mogg embarrasses Conservative Council (again)<br/>By Hadleigh Roberts<br/>Hinchcliffe was at the time the politically-restricted Tory group<br/>researcher on B&NES (as the Private Eye article explains) – this means<br/>banana skin-prone JRM has benefited from a Council officer, paid by the<br/>council tax payer to ...<br/><http://hadleigh.eu/2009/07/tory-jacob-rees-mogg-embarrasses-conservative-council-again/><br/>Hadleigh Roberts<br/><br/>Council tax rises to rescue local government pension schemes?<br/>FT.com Blogs<br/>by Jim Pickard The man who runs the Local Government Pension SCheme has<br/>warned that public sector pensions need radical reform to meet critics who<br/>believe ...<br/><http://blogs.ft.com/westminster/2009/07/council-tax-rises-to-rescue-local-government-pension-schemes/><br/>See all stories on this topic:<br/><http://news.google.com/news/story?ncl=http://blogs.ft.com/westminster/2009/07/council-tax-rises-to-rescue-local-government-pension-schemes/&hl=en><br/><br/>Tackle pensioner poverty, urge MPs<br/>Public Finance<br/>Local authorities could also take action to increase the take-up of housing<br/>and council tax benefit, the report said. The committee said it was ...<br/><http://www.publicfinance.co.uk/news/2009/07/tackle-pensioner-poverty-urge-mps/><br/>See all stories on this topic:<br/><http://news.google.com/news/story?ncl=http://www.publicfinance.co.uk/news/2009/07/tackle-pensioner-poverty-urge-mps/&hl=en><br/><br/>Mayor Peyton Vetoes City Council Tax Vote<br/>First Coast News<br/>JACKSONVILLE, FL -- Mayor John Peyton has fired back in the battle to<br/>balance the city budget. The Mayor vetoed City Council's amendment to keep<br/>the millage ...<br/><http://www.firstcoastnews.com/news/topstories/news-article.aspx?storyid=142486&catid=3><br/>See all stories on this topic:<br/><http://news.google.com/news/story?ncl=http://www.firstcoastnews.com/news/topstories/news-article.aspx%3Fstoryid%3D142486%26catid%3D3&hl=en><br/><br/>Time to scrap such an unaffordable tax<br/>Express & Echo<br/>This was the second such meeting and it became clear that the one cost that<br/>most members found abhorrent and least affordable was council tax. ...<br/><http://www.thisisexeter.co.uk/features/Time-scrap-unaffordable-tax/article-1204099-detail/article.html><br/>See all stories on this topic:<br/><http://news.google.com/news/story?ncl=http://www.thisisexeter.co.uk/features/Time-scrap-unaffordable-tax/article-1204099-detail/article.html&hl=en><br/><br/>Peyton vetoes Council's tax rate cap<br/>Bizjournals.com<br/>Mayor John Peyton has vetoed the bill passed by City Council Tuesday night<br/>that would have put a ceiling on the tax rate of 8.48 mills. ...<br/><http://www.bizjournals.com/jacksonville/stories/2009/07/27/daily30.html><br/>See all stories on this topic:<br/><http://news.google.com/news/story?ncl=http://www.bizjournals.com/jacksonville/stories/2009/07/27/daily30.html&hl=en><br/><br/>Middle class homeowners to be hit by council tax hikes<br/>Easier (press release)<br/>Government plans revealed this week to overhaul the council tax system<br/>after the election will send a chill down the spines of middle class<br/>homeowners, ...<br/><http://www.easier.com/view/UK_Property_News/General/article-262394.html><br/>See all stories on this topic:<br/><http://news.google.com/news/story?ncl=http://www.easier.com/view/UK_Property_News/General/article-262394.html&hl=en><br/><br/>Mayor Vetoes Council's Tax Bill<br/>News4Jax.com<br/>JACKSONVILLE, Fla. -- The morning after City Council voted down a proposal<br/>to increase the property tax rate by passing a resolution keeping the<br/>current ...<br/><http://www.news4jax.com/news/20213291/detail.html><br/>See all stories on this topic:<br/><http://news.google.com/news/story?ncl=http://www.news4jax.com/news/20213291/detail.html&hl=en><br/><br/>Cuts or rises: toxic claim 'will hit council tax payers'<br/>Independent<br/>He said: "If we were to settle in one go then it would cost us about a 150<br/>per cent rise in council tax, which is unacceptable, cuts of the level<br/>which is ...<br/><http://www.independent.co.uk/news/uk/home-news/cuts-or-rises-toxic-claim-will-hit-council-tax-payers-1764382.html><br/>See all stories on this topic:<br/><http://news.google.com/news/story?ncl=http://www.independent.co.uk/news/uk/home-news/cuts-or-rises-toxic-claim-will-hit-council-tax-payers-1764382.html&hl=en><br/>Council tax rises to rescue local government pension schemes?<br/>FT.com Blogs<br/>by Jim Pickard The man who runs the Local Government Pension SCheme has<br/>warned that public sector pensions need radical reform to meet critics who<br/>believe ...<br/><http://blogs.ft.com/westminster/2009/07/council-tax-rises-to-rescue-local-government-pension-schemes/><br/>See all stories on this topic:<br/><http://news.google.com/news/story?ncl=http://blogs.ft.com/westminster/2009/07/council-tax-rises-to-rescue-local-government-pension-schemes/&hl=en><br/><br/>Tackle pensioner poverty, urge MPs<br/>Public Finance<br/>Local authorities could also take action to increase the take-up of housing<br/>and council tax benefit, the report said. The committee said it was ...<br/><http://www.publicfinance.co.uk/news/2009/07/tackle-pensioner-poverty-urge-mps/><br/>See all stories on this topic:<br/><http://news.google.com/news/story?ncl=http://www.publicfinance.co.uk/news/2009/07/tackle-pensioner-poverty-urge-mps/&hl=en><br/><br/>Mayor Peyton Vetoes City Council Tax Vote<br/>First Coast News<br/>JACKSONVILLE, FL -- Mayor John Peyton has fired back in the battle to<br/>balance the city budget. The Mayor vetoed City Council's amendment to keep<br/>the millage ...<br/><http://www.firstcoastnews.com/news/topstories/news-article.aspx?storyid=142486&catid=3><br/>See all stories on this topic:<br/><http://news.google.com/news/story?ncl=http://www.firstcoastnews.com/news/topstories/news-article.aspx%3Fstoryid%3D142486%26catid%3D3&hl=en><br/><br/>Time to scrap such an unaffordable tax<br/>Express & Echo<br/>This was the second such meeting and it became clear that the one cost that<br/>most members found abhorrent and least affordable was council tax. ...<br/><http://www.thisisexeter.co.uk/features/Time-scrap-unaffordable-tax/article-1204099-detail/article.html><br/>See all stories on this topic:<br/><http://news.google.com/news/story?ncl=http://www.thisisexeter.co.uk/features/Time-scrap-unaffordable-tax/article-1204099-detail/article.html&hl=en><br/><br/>Peyton vetoes Council's tax rate cap<br/>Bizjournals.com<br/>Mayor John Peyton has vetoed the bill passed by City Council Tuesday night<br/>that would have put a ceiling on the tax rate of 8.48 mills. ...<br/><http://www.bizjournals.com/jacksonville/stories/2009/07/27/daily30.html><br/>See all stories on this topic:<br/><http://news.google.com/news/story?ncl=http://www.bizjournals.com/jacksonville/stories/2009/07/27/daily30.html&hl=en><br/><br/>Middle class homeowners to be hit by council tax hikes<br/>Easier (press release)<br/>Government plans revealed this week to overhaul the council tax system<br/>after the election will send a chill down the spines of middle class<br/>homeowners, ...<br/><http://www.easier.com/view/UK_Property_News/General/article-262394.html><br/>See all stories on this topic:<br/><http://news.google.com/news/story?ncl=http://www.easier.com/view/UK_Property_News/General/article-262394.html&hl=en><br/><br/>Mayor Vetoes Council's Tax Bill<br/>News4Jax.com<br/>JACKSONVILLE, Fla. -- The morning after City Council voted down a proposal<br/>to increase the property tax rate by passing a resolution keeping the<br/>current ...<br/><http://www.news4jax.com/news/20213291/detail.html><br/>See all stories on this topic:<br/><http://news.google.com/news/story?ncl=http://www.news4jax.com/news/20213291/detail.html&hl=en><br/><br/>Cuts or rises: toxic claim 'will hit council tax payers'<br/>Independent<br/>He said: "If we were to settle in one go then it would cost us about a 150<br/>per cent rise in council tax, which is unacceptable, cuts of the level<br/>which is ...<br/><http://www.independent.co.uk/news/uk/home-news/cuts-or-rises-toxic-claim-will-hit-council-tax-payers-1764382.html><br/>See all stories on this topic:<br/><http://news.google.com/news/story?ncl=http://www.independent.co.uk/news/uk/home-news/cuts-or-rises-toxic-claim-will-hit-council-tax-payers-1764382.html&hl=en><br/><br/><div class='zemanta-pixie'><img src='http://img.zemanta.com/pixy.gif?x-id=3759580f-91f4-806c-9365-9ca2dfd32dc8' alt='' class='zemanta-pixie-img'/></div></div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-22894212758162637902009-07-12T05:59:00.000+10:002009-08-05T05:57:27.990+10:00Reading List 12/07/09<div xmlns='http://www.w3.org/1999/xhtml'>Low-carbon strategy will raise household energy bills by £200 a year<br/>Council tax banding ... a suitable case for DIY<br/>guardian.co.uk - UK<br/>It claims to be able to do a search on local properties and identify<br/>whether homeowners might be entitled to council tax rebates, sending a<br/>report within 48 ...<br/><http://www.guardian.co.uk/money/2009/jul/11/council-tax-overcharge><br/>See all stories on this topic:<br/><br/>Benefits cheat made £17000 false claims - Blackpool Today<br/>Between June 2005 and July last year she illegally claimed £17364 in<br/>income support, housing and council tax benefits. John McLaren, defending,<br/>said his client had no previous convictions. Cheetham's husband had not<br/>lived at the family ...<br/><http://www.blackpoolgazette.co.uk/blackpoolnews/Benefits-cheat-made-17000-false.5450004.jp><br/>Blackpool Today - News<br/><http://www.blackpoolgazette.co.uk/NewsFront.aspx?SectionID=62><br/><br/>…..Pikeys and Pigs. « And there was me thinking…..<br/>By mummylonglegs<br/>Pikeys don't have to pay things like council tax, etc and if they live in a<br/>really pro-active area they will even recieve the odd party that they will<br/>be paid £60 to attend. Pikeys can sleep safe at night knowing that local<br/>councils are ...<br/><http://andtherewasmethinking.wordpress.com/2009/07/11/pikeys-and-pigs/><br/>And there was me thinking.....<br/><http://andtherewasmethinking.wordpress.com/]<br/><br/>Council Tax Buchanan Clark and Wells Advice needed The Consumer Forums<br/>Hi everyone, I'm new here and looking for some advice. Recently I went to<br/>the council tax office in Glasgow to pay money that was owed to them.<br/><http://www.consumeractiongroup.co.uk/forum/welcome-consumer-forums/208921-council-tax-buchanan-clark.html><br/><br/><br/><div class='zemanta-pixie'><img src='http://img.zemanta.com/pixy.gif?x-id=77f2bf37-a821-8865-8f7c-96c1e418dda5' alt='' class='zemanta-pixie-img'/></div></div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-87553626321240793822009-07-05T05:59:00.001+10:002009-10-12T16:51:40.154+11:00The source of ability-to-pay pay theory<div xmlns="http://www.w3.org/1999/xhtml"><i>Taxation according to ability to pay means, therefore, taxation with the minimum of economic loss to the community as a whole.</i>
Hugh Dalton:</div><div xmlns="http://www.w3.org/1999/xhtml">Principles of Public Finance, <span class="Apple-style-span" style="font-size: small;">1923 pp126</span>.
<div class="zemanta-pixie"><img src="http://img.zemanta.com/pixy.gif?x-id=dc0c010a-a91d-8d82-bf37-7a10715766e0" alt="" class="zemanta-pixie-img" /></div></div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-46713470555132616172009-03-28T00:02:00.008+11:002009-07-23T07:58:33.887+10:00Property bubble leads to crash landingBryan Kavanagh
March 28, 2008 - 12:02am THE AGE
</p>WHEN it mattered, the US Federal Reserve, US banks and rating agencies failed the risk-management test — in much the same way that Australia is now failing it.<p>
</p>This is because <b>none</b> of these bodies comprehends the manner in which the real estate market leads the economy. Many considerations flow from this, because businesses and individuals borrow against the value of their property assets. So when real estate bubbles burst and banks and mortgagors are left exposed, analysts flounder with such <b>hogwash</b> as "business cycles and recessions are a natural part of the financial landscape". Another knee-jerk reaction to systemic failure is simply to blame banks and borrowers. It seems anything will do, rather than tackle the fundamental flaw in risk management.<p>
</p>Here is an unyielding truth. A country cannot go into recession unless there has been a real estate bubble. US land economist Homer Hoyt documented the fact back at the beginning of the 19th century. The Land Values Research Group recently defined and studied the effects of property bubbles in Unlocking the Riches of Oz: A Case Study of the Social and Economic Costs of Real Estate Bubbles, 1972 to 2006, which is freely available at www.lvrg.org.au. It concludes that the current residential bubble has hyper-inflated since 1999 and is about to burst, despite sophisticated financial derivatives, hedge funds, collateralised debt obligations, credit default swaps, all brought into existence to "insure" that it not burst. The failure of derivatives will compound the upcoming financial threat.<p>
</p>It is sobering, too, to note that the relative scale of our real estate bubble is greater than that in the US. It is therefore irresponsible and incorrect to blame a potential recession in Australia on some sort of spiritual emanations from US subprime mortgage lending. The truth is that we have an enormous debt bubble of our own and suffer the same vast hole in credit management that has again been exposed in the US. This will resolve itself with extreme prejudice to Australian society and requires <b>immediate</b> attention.<p>
</p>We may only solve the problem by shifting taxes off "goods", such as earning incomes, onto "bads", such as real estate speculation and escalating land prices. This, rather than the Reserve Bank continually raising interest rates, may actually get to grips with inflation and avert the folly of accepting bubble-inflated land prices as "security" for loans.<p>
</p>Although the relationship between Australia's total land values and gross domestic product has varied since 1911, it has averaged 1-to-1. Although it got to 1.56-to-1 in the 1930s Depression, it now stands at a menacing 2.5-to-1. This mirrors situations around much of the Western world, except France, which doesn't put real estate speculation on an untouchable pedestal as we have been inclined to do.<p>
</p>When viewed as a long-term analysis against rising GDP, it can be seen that land price bubbles are<b> neither</b> merely the result of population growth <b>nor</b> the undersupply of residential allotments, as argued on this page (BusinessDay, 13/3) by Alan Moran of the Institute of Public Affairs. Incredible numbers of existing vacant lots and underutilised sites would spill out into a genuine real-estate market if we redressed the imbalance between taxes on productivity and the <b>puny</b> levels of rates and taxes on socially generated land values that fail to deter speculative land banking.<p>
</p>What form should the "tax shift" take? First, we have to turn a deaf ear to the ever-insistent call from <b>self-interested</b> property groups for greater tax incentives, or for council rates and state land taxes to be reduced to a mere revenue appendage, "so that we may continue to provide housing for all Australians".<p>
Rather, to encourage new housing construction and real wealth creation, we need to do precisely the opposite, by removing unproductive payroll taxes, stamp duties and up-front development charges, and recouping these revenues through state land tax systems. At the same time, we should seize the opportunity to reform state land taxes, removing their <b>curious</b> exemptions, thresholds, multiple rates and aggregation provisions, along the lines thoughtfully proposed in Victoria's 2001 Review of State Business Taxes ("The Harvey Report").<p>
</p>Arguably, the best option would be to hand the governance of reformed state land taxes to the RBA as a tool to complement interest rate policy. A single rate land tax would apply Australia-wide to all privately owned land, the revenue therefrom going back to the states and territories in direct proportion to the land values that raised it. By these means, it might be possible gradually to phase out more than rates, land tax and development charges from the 156 taxes recently condemned by the Business Council of Australia. Although a side effect would be to make housing more accessible and affordable for all Australians, the main thrust would be to reduce the private capture of publicly generated land values. This would finally close the loophole in credit management through which truckloads of new financial "products" have been driven. By eliminating land price bubbles, it would no longer be possible to offer bubble-inflated assets as "security" for loans.<p>
</p>If their children are unable to assist them, people who are asset rich and income poor would be permitted to defer their land tax liability by means of a charge on title for the revenue forgone, to be collected when they pass
from this world. And if proper arrangements were made for rates and land taxes to be deducted from incomes in instalments, this would not convert them into income taxes, because it is the revenue base that is paramount in producing an equitable revenue system, not the process by which the revenues are collected.</p><p>
</p>The property lobby puts out the propaganda that rates and land taxes can be passed on in prices. But why should this trouble them, as it so obviously does, if they are able to pass them on in rents? The truth can be found in most economic textbooks: rates and taxes on land are the only form of revenue that cannot be passed on.<p>
</p>If we are to navigate the upcoming recession effectively, the public should understand the integral role played by perverse tax regimes in risk-management failure.<p>
</p>Bryan Kavanagh is a real estate valuer and honorary director of the Land Values Research Group.<p><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-36079283608951839252009-02-28T05:54:00.002+11:002009-07-18T07:09:44.087+10:00First Home Buyer Grant working for whom?<div xmlns="http://www.w3.org/1999/xhtml">Victorian Council of Social Service's David Imber writes:
I would have thought Richard Farmer would be more careful than to walk into the fog of spin currently circulating in our nation’s media around the first home buyers grant and not report this spin as fact. No-one with any awareness of the history and beneficiaries of the grant should be surprised that its chief supporters -- real estate agents and property developers -- are the very people currently promoting the benefits of the increased grant and then seeking that it be extended or made permanent. It’s just a shame that some in the media and many in government are so uncritically reporting and receiving this news as if it’s fact. The reality is that, rather than benefiting first home buyers, the grant is once again benefiting vendors and developers.
All the credible evidence about the grant since its introduction almost a decade ago -- be it from bank economists or housing researchers -- has consistently demonstrated that the grant has gone straight into higher house prices.
Given that the grant (in its $7,000 form as well as its stimulus-driven $21,000 form for new stock) is not means tested and broadly available, it is hardly surprising that it's simply allowed vendors to extract more money from first home buyers. And here’s the rub -- the vendors benefiting include all the developers and speculators who now have an increased grant to add to their land banks and staged releases.
Investors and real estate agents can now time property sales to ensure that just enough property goes on the market each week, so just enough of it sells, that they can breathlessly report in Monday’s newspapers "property is surviving the boom!" Not to mention the favourite claim (made almost every week of every year) that “now is a great time to get into the market”.
The first home buyers grant has no doubt been given to many first home buyers believing it has provided them with the little bit extra they needed to buy their first home. Yet those people forget that almost every other buyer has just increased their budget by the amount of the grant while investors have their own tax breaks to fund a higher purchase price.
The grant has been used by the already well off children of well off parents for whom the grant has merely added to the amount that their family has been able to give them. It has also been rorted by those buying property in the name of their spouses, or by a range of first-time investors who have used the grant alongside tax breaks to buy into market. Some of this rorting has been found by State revenue offices, but much has undoubtedly gone unreported. At the same time, the real victims of the housing market, low income private renters, have seen property prices artificially inflated by a grant that actually puts their housing dream further out of reach.
The housing market is not a fair and transparent market and the expansion of the grant has only exposed this anew. There is a reason to be concerned that at a time of economic downturn the construction industry is suffering. That is why the investment of over $6 billion into new public and community housing is the right counter cyclical measure (not to mention good, and long overdue, social policy).
The $1.5 billion announced last year in expended first home buyer grants that top up the already poorly targeted $1 billion per annum is the wrong strategy. It is poorly targeted industry assistance for new housing and a complete waste of money when spent on existing housing. It would be more honest to call it a government-funded vendor housing payment. Which of course the Government would if it wasn’t such a politically attractive (though misleadingly) named grant.
If, as a country, we want to support low and middle income earners entering the housing market then we should do so in a targeted way that helps those who need it without boosting house prices for everyone else. If governments want to subsidise builders and developers then they should do so transparently and see how popular it looks then. The media should look more critically at blatant spin from developers, investors and speculators that purports to protect the very people they’re seeking to make money off.
2009/02/28 David Imber is the Policy and Public Affairs Manager of the Victorian Council of Social Service and was formerly the spokesperson for Australians for Affordable Housing.
</div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-43035474670727391072009-02-24T06:45:00.002+11:002009-07-18T07:13:24.394+10:00Mirvac: land is for hocking, not housing<div xmlns="http://www.w3.org/1999/xhtml">Crikey.com - 2009/02/28</div><div xmlns="http://www.w3.org/1999/xhtml">
</div><div xmlns="http://www.w3.org/1999/xhtml">Karl Fitzgerald writes:
Real estate group Mirvac yesterday admitted what many affordability watchers know: the housing market is manipulated to suit shareholders over householders.
Due to the fear that an $81.4m half-yearly operating profit is insufficient, first home buyers will have to pay higher land and housing prices to support Mirvac's Executive Incentive Scheme.
Mirvac managing director Nick Collishaw admits to the immense power of land monopolists in Mirvac to delay land releases in existing estates:
Effectively what we are doing for the bulk of the projects that we have in Victoria is managing a staged release -- rather than have a release with 100 lots in it, the stage sizes will be much smaller.
This behaviour exhibits why Brumby's land supply handout to the property lobby will do nothing to assist affordability. Land and housing releases are manipulated to suit profiteering over people.
What difference is there between this behaviour and the alleged Richard Pratt school of price fixers? Have a look at the HIA's Land Supply index and make your own decision.
As Australia's affordability epidemic gets left behind in the backwash of the GFC, the genuine land supply issue is that controlled privately by land banking developers.
Compounding these issues, the write-offs on Mirvac's investment properties total more than $800 million dollars. Top and tailing the benefits of the system, Mirvac has the power to drip feed land and housing to market such that home buyers of all generations are guaranteed to pay 40% of their income on rent or mortgages.
And the government is silent on this market manipulation.
Governments at all levels are complicit in the rights of land speculators over and above the future of its people. One need only refer to the recent AEC figures to understand the power of lobbyocracy.
For the productive economy to survive, we must push for more effective public finance policy. Higher holding charges on land are needed to force land prices back to affordable levels. Spin-offs include the abolition of payroll, GST and a massive cut in income taxes. Investment in new infrastructure becomes self funding through land value capture.
When this occurs, the land and housing market will no longer be seen as a casino. The risk of global meltdowns will be reduced when we no longer have to borrow so much to put a roof over our heads. Speculators will become producers, hopefully funding the inventions needed for a sustainable rather than sprawling society.
Relatively speaking, who really benefits from rising land and housing prices?</div><div xmlns="http://www.w3.org/1999/xhtml">
</div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-91339334167391155252009-02-24T06:42:00.002+11:002009-07-20T13:56:17.069+10:00Consumer Confidence Slips as Home Prices Drop<div xmlns="http://www.w3.org/1999/xhtml"><div class="byline">By <a title="More Articles by Michael M. Grynbaum" href="http://topics.nytimes.com/top/reference/timestopics/people/g/michael_m_grynbaum/index.html?inline=nyt-per">MICHAEL M. GRYNBAUM</a></div>
<div class="timestamp">Published: April 29, 2008<p>Americans’ confidence in the economy continued to plunge this
month as their homes lost value at the fastest rate in two decades,
according to reports released on Tuesday.
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<img width="190" height="308" border="0" alt="" src="http://graphics8.nytimes.com/images/2008/04/29/business/0430-biz-WEBECON-ConsumerCo.gif" />
<div class="credit">The New York Times </div></div> </div></div> <p>The data suggested that the housing slump was far from a recovery and the job market might continue to weaken, ratcheting up pressure on the Federal Reserve, which began a two-day meeting on Tuesday, to take steps to stave off a prolonged slowdown.</p></div></div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-40856202101987806572007-11-22T07:45:00.001+11:002007-11-22T07:45:25.562+11:00Institutes Urge Reforms to Reverse German Economic Slowdown<div xmlns='http://www.w3.org/1999/xhtml'>
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<div class='picBoxDetailTop'><a onclick='return openPopup(this.href,'Image','picPopup');' target='_blank' href='http://www.dw-world.de/popups/popup_lupe/0,,2829891,00.html' linkindex='42' set='yes'><img border='0' alt='Angela Merkel looks to the heavens during a Bundestag debate' src='http://www.dw-world.de/image/0,,2245614_1,00.jpg'/></a><div class='captionBox'><i class='caption'><a onclick='return openPopup(this.href,'Image','picPopup');' target='_blank' href='http://www.dw-world.de/popups/popup_lupe/0,,2829891,00.html' linkindex='43' set='yes'><span/>Calls for more economic and labor reforms are not what Angela Merkel wants to hear</a></i></div><div class='clearing'> </div></div><h4 class='detailContentTeasertext'>
Leading economic institutes called on German Chancellor Angela Merkel's
government on Thursday, Oct. 18, to step up reform and warned that
Europe's biggest economy faced slowing growth next year.</h4>
<div class='detailContent'><p>
</p><p>The institutes told the government in their autumn report
presented in Berlin on Thursday that German growth will slip back to
2.2 percent in 2008 from 2.6 percent this year, with a soaring euro,
the global credit crunch and surging oil prices undercutting the
nation's expansion rate.<br/><br/>Some economists are more pessimistic
and believe Germany will be lucky to reach a growth rate next year of 2
percent. The International Monetary Fund said this week it expects
German growth will slip to 2 percent next year from 2.4 percent for
2007.<br/><br/>Thursday's report was drawn up by four leading German
economic institutes in conjunction with research groups from other
European nations.<br/><br/><strong>Criticism of ineffective reforms</strong></p>
<p>Coming in the wake of criticism by German business about the failure
of Angela Merkel's government coalition to press on with economic
reform, the institutes said: "Much more additional work needs to be
done rather than roll back the reforms so far discussed.<br/><br/>"The labor market reform course of the last few years has not progressed," the institutes added.</p>
<p><span style='width: 194px;' class='picBoxInlineEven'><a onclick='return openPopup(this.href,'Image','picPopup');' target='_blank' href='http://www.dw-world.de/popups/popup_lupe/0,,2829891_ind_1,00.html' linkindex='44' set='yes'><img width='192' height='142' border='0' alt='For Sale signs outside houses in the United States' src='http://www.dw-world.de/image/0,,2719737_1,00.jpg'/></a><i class='caption'><span/><a onclick='return openPopup(this.href,'Image','picPopup');' target='_blank' href='http://www.dw-world.de/popups/popup_lupe/0,,2829891_ind_1,00.html' linkindex='45' set='yes'>The US housing market crisis had a knock-on effect</a></i></span></p>
<p>The report comes as economists attempt to size up the ramifications
of the shakeout in global share prices in August following the credit
crunch triggered by the US housing market crisis.<br/><br/>At the same time, the institutes joined a growing list of forecasters who have revised down their growth outlook for Germany.<br/><br/>High
oil prices, the strong euro and financial market uncertainty will
"dampen growth," Roland Döhrn, an economist with the Essen-based
Institute for Scientific Research (RWI), told a press conference
following the release of the report.<br/><br/>In their last report in the
spring, the institutes projected a growth rate for Germany of 2.4
percent in both 2007 and 2008, with strong export demand powering the
nation's economic performance.<br/><br/><strong>Export growth likely to decline</strong></p>
<p>Since then, however, the euro has climbed to an all-time high of
$1.43 as fears have set in about the US economic outlook, consequently
fuelling concerns about the prospects for Germany's key export machine.<br/><br/>The
institutes predict German export growth will decline to 3 percent in
2008 from 3.5 percent this year, with stronger private consumption
emerging as a key pillar of growth.<br/><br/>The institutes are also forecasting private consumption to grow by 1.5 percent next year compared to just 0.2 percent in 2007.<br/><br/>The
release of the institutes' report is expected to lead to the German
government also scaling back its growth projections for the nation.<br/><br/>Germany
emerged last year from a protracted period of stagnation, with a recent
solid growth rate helping to ease the nation's high unemployment.</p>
<p><strong>Larger reduction in unemployment that expected</strong></p>
<p><span style='width: 194px;' class='picBoxInlineUneven'><a onclick='return openPopup(this.href,'Image','picPopup');' target='_blank' href='http://www.dw-world.de/popups/popup_lupe/0,,2829891_ind_2,00.html' linkindex='46' set='yes'><img width='192' height='142' border='0' alt='Jobless wait in line at a German job center ' src='http://www.dw-world.de/image/0,,406285_1,00.jpg'/></a><i class='caption'><a onclick='return openPopup(this.href,'Image','picPopup');' target='_blank' href='http://www.dw-world.de/popups/popup_lupe/0,,2829891_ind_2,00.html' linkindex='47'>German unemployment dropped in September</a></i></span></p>
<p>The number of people out of work in Germany fell more than expected
in September, data released last month showed, with employers
continuing to hire on the back of the economic upswing and years of
wage restraint.<br/><br/>The institutes expect unemployment to continue
falling to average 7.9 percent in 2008 compared to 8.7 percent in 2007.
Germany's jobless rate stood at 10.3 percent last year.<br/><br/>Apart
from the RWI, the German institutes involved in drawing up the report
included the Kiel Institute for the World Economy (IfW), Halle
Institute for Economic Research (IWH) and the Munich- based Ifo
Institute for Economic Research. </p></div>
<p class='author'>
DW staff / DPA (nda)
</p>
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</div>
<div> </div><span/><br/><br/>Technorati Tags: <a rel='tag' href='http://technorati.com/tag/German' class='performancingtags'>German</a>, <a rel='tag' href='http://technorati.com/tag/Slow-down' class='performancingtags'>Slow-down</a></div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-73142915517447920002007-11-12T23:56:00.001+11:002007-11-12T23:56:02.240+11:00Melb council CEO resigns<div xmlns='http://www.w3.org/1999/xhtml'> <script type='text/javascript'> </script> <div class='related'> <ul><img src='http://abc.net.au/news/stories/2007/11/12/2088490.htm'/><li class='expandable'><a href='http://abc.net.au/news/stories/2007/11/12/2088490.htm'>ABC News Story</a><br/>
<a onclick='if (typeof showMap == 'function') return showMap(this, '100%', -37.8099, 144.9622, 'Melbourne 3000');' href='http://www.abc.net.au/news/maps/map.htm?lat=-37.8099&long=144.9622&caption=Melbourne%203000' linkindex='39'><strong/></a></li><li class='expandable'><a onclick='if (typeof showMap == 'function') return showMap(this, '100%', -37.8099, 144.9622, 'Melbourne 3000');' href='http://www.abc.net.au/news/maps/map.htm?lat=-37.8099&long=144.9622&caption=Melbourne%203000' linkindex='39'><strong>Map: </strong>Melbourne 3000</a> </li></ul> </div> <br/><br/> <div id='storyRelatedMedia'> <div class='photo' id='storyPhotos'> <a href='http://www.abc.net.au/reslib/200711/r199389_761844.jpg' id='storyPhotosLink' linkindex='38' set='yes'> <img width='285' height='246' alt='David Pitchford announces his resignation from Melbourne City Council' src='http://www.abc.net.au/reslib/200711/r199389_761839.jpg' id='storyPhotosImg' title='David Pitchford announces his resignation from Melbourne City Council'/> </a> <p class='caption' id='storyPhotosCaption'>The Chief Executive of Melbourne City Council, David Pitchford is heading for Dubai. (ABC TV)</p></div></div><p class='first'>The Chief Executive of Melbourne City Council has resigned, to take up a position with a property development company in Dubai.</p> <p>David Pitchford came under fire three months ago, when dozens of council staff were sacked, after an independent report criticised the council's financial management.</p> <p>Mr Pitchford says the decision to leave is entirely his and the job cuts he ordered were necessary.</p> <p>"I think that that's a good thing it happened under my watch because it was certainly well and truly needed," he said.</p> <p>"It hadn't been done for 16 or 17 years and the fact that I decided to do it was a bold and brave move but I stand by the fact that it needed to be done".</p> <p>Mr Pitchford says he leaves the council in a solid financial position. </p> <p>"We've got over $3.5 billion in assets, $250 million in cash reserves," he said.</p> <p>"We just delivered an operating surplus of $174.5 million and the situation couldn't be more sound".</p></div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-39855128151110136132007-11-03T07:22:00.001+11:002007-11-03T07:22:09.725+11:00hdgn16<div xmlns='http://www.w3.org/1999/xhtml'><a href='http://xsferg.blogspot.com/2007/09/gettysburg-address.html'> gettysburg address</a><br/><h2 class='date-header'><small><small><small><small>Wednesday, September 19, 2007</small></small></small></small></h2>ALBANY ― Albany Civic Center Director John Mazzola outlined plans to
incorporate updated rates at the facility and create a better rate of
recovery on tax money spent in what City Manager Alfred Lott jokingly
referred to as Mazzola's "Gettysburg Address on the civic center"
during an Albany City Commission work session Tuesday morning.<br/><br/>... They were debating tax yesterday morning: reduce the standard rate by 4p, cane the rich, but even that didn't excite them.
They talked about VED, LIT, LVT and SVR, and everyone in the hall
knew what they meant. But nobody even murmured, still less chanted,
"What do we want? Site value rating! When do we want it? As soon as
circumstances make it advisable!"
</div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-10995538.post-55732158151840830302007-10-11T04:42:00.001+10:002007-10-11T04:42:43.535+10:00State home prices expected to drop<div xmlns='http://www.w3.org/1999/xhtml'><b>A real estate trade group says next year will see the first decline in more than a decade.</b>
<font color='#999999'><small>By Annette Haddad, Los Angeles Times Staff Writer
9:20 AM PDT, October 10, 2007</small></font>
Home values are expected to drop next year for the first time in more than a decade and sales will remain slow as California's housing market continues to languish, the state's top real estate trade group predicted today.
The median price of an existing California home is expected to decline 4% to $553,000 in 2008, compared with a projected median of $576,000 this year, according to the California Assn. of Realtors forecast.
Sales are likely to fall 9% next year, which would be the slowest rate of decline in two years.
The forecast by the state Realtors comes as their national counterparts projected a steeper decline this year in existing homes sales nationwide than previously anticipated.
The National Assn. of Realtors today revised, for the eighth consecutive time, its outlook of U.S. existing home sales, which are now expected to fall 10.8% compared to 2006. It would be the worst year for U.S. home sales since 2002.
U.S. home prices are forecast to drop 1.3% to a median of $210,200 this year. The median is the point where half the homes sell for more and half for less.
In California, lower-priced markets will remain especially weak next year thanks to the sub-prime mortgage meltdown, tighter loan-writing standards and discounting by new-home builders hoping to clear their inventory.
"Geographically, more affordable regions such as the Central Valley and Inland Empire will experience greater softness in the resale market because of the large number of new homes coming onto the market in recent years," said Leslie Appleton-Young, the state Realtors group chief economist.
But she warned that even higher-priced markets, including Los Angeles, Orange County and the Bay Area, where prices continue to appreciate and sales have been more robust, will start to show signs of stress, though to a lesser extent.
"Higher-priced regions of the state will react more to affordability constraints," she said.
Appleton-Young declined to offer any predictions for the state's housing market beyond 2008.
The last time existing California home prices fell was in 1996, when the median price declined 0.5%, according to the Realtors' calculations. In 2003, 2004, and 2005, home prices rose more than 16% year over year.
In 2006, home prices started to moderate, rising 6.2%. For 2007, the Realtors forecast a 3.5% price increase to a record $576,000, even as sales volume drops 23%.
The biggest factor facing the state's housing market is the rise in the supply of new and existing homes for sale. In August, the Realtors group found that there were so many existing, single-family homes for sale in California that it would take 11.8 months to deplete the supply if no additional houses came on the market.
The ample inventory has prompted the normally optimistic Realtors group to discourage homeowners from selling unless they absolutely must.
"Now is not the time for homeowners to 'test the waters.' Only serious sellers should put their homes on the market in what will continue to be a challenging sales environment," said association President Colleen Badagliacco.
The California Assn. of Realtors calculates its median price based on a sampling of data about existing-home sales supplied by real estate brokers around the state. The data don't include sales of newly built homes.
annette.haddad@latimes.com
Technorati Tags: <a rel='tag' href='http://technorati.com/tag/California' class='performancingtags'>California</a>, <a rel='tag' href='http://technorati.com/tag/Price%20Drop' class='performancingtags'>Price Drop</a>, <a rel='tag' href='http://technorati.com/tag/' class='performancingtags'/></div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-10995538.post-79253233268392933472007-09-23T15:48:00.004+10:002009-07-20T15:05:59.873+10:00Stressing on mortgages<div xmlns='http://www.w3.org/1999/xhtml'><div class='article-publish'>
<p class='author'>Liam Walsh</p>
<p class='published-date'>September 22, 2007 12:00am</p>
</div>
<p class='standfirst'><a href='http://www.news.com.au/heraldsun/story/0,21985,22459557-664,00.html'><strong style='display: block;'>JILLIAN Fletcher has been a financial counsellor since 2001 and she's seen how people try to manage "mortgage stress".</strong></a></p>
<p>"They might turn the Foxtel off, they will stop going out, they will probably cut down on the takeaway," the Lifeline counsellor says. There are other cuts that people suffering "mortgage stress" make to cope with paying hefty proportions of their income to keep up with loan repayments. Insurance might go. "Not only the house, but their personal insurance, their car insurance, those sort of things will lapse -- certainly the rates notices as well," she says.
Some even skip dental care or just bulk-up on credit cards to pay for groceries. Unfortunately, she could meet more people doing this in the credit crunch stemming from US mortgage woes. But lower spending on those extras is just one ramification for Australia. </p>
<p>Australia might see greater repossessions, less stock-market dabbling from mums and dads, or prolonged housing market malaise. The prices paid for businesses might dip and competition for takeovers dwindle. If things go really pear-shaped overseas, Australian economic growth could slow. But most see Australia's economy as remaining strong despite global shocks emanating from the US sub-prime lending woes. Such sub-prime loans are basically Australia's equivalent of non-conforming loans (those handed to people with bad credit history or the like). But a swathe of Americans have been unable to repay these debts. This triggered problems with big lenders, flowed to credit
markets and spread globally. Only this month, British authorities moved to bail out beleaguered
mortgage lender Northern Rock where worried customers queued to withdraw savings. </p>
<p>In the US this week, the Federal Reserve Board cut interest rates by 0.5 per cent to improve fund flows. In Australia, investors were so jumpy that a false rumour about Adelaide Bank seeking emergency funding knocked almost 7 per cent from its share price. That reflected a rough time for other financial stocks, although they rebounded the next day along with the market. But Intersuisse analyst Peter Russell says the volatility might
prompt greater reluctance for people to invest new cash into shares. "While you might move your existing exposures around . . . it's difficult to see people adding a lot until the picture becomes a bit clearer," he says. </p>
<p>The cash some Australians have for investing might dwindle with mortgage costs rising. Higher costs have especially hit those using smaller lending institutions, which themselves are facing higher costs for funds. A JP Morgan/Fujitsu report this week said US sub-prime issues and subsequent increased cost of wholesale funding (for lenders) would lead to increased pricing for lending. "This will see the number of Australian households under severe
stress rise from 70,000 to 113,000," it said, adding the caveat that banks might actually refrain from passing on increased funding costs. </p>
<p>Mortgage stress should mean less cash to spend, especially on those big-ticket items like plasma TVs. But so far, it hasn't crashed retailers like Harvey Norman which last month reported an "insatiable demand" for the latest technology products. Richard Gibbs, global head of economics at Macquarie, links this to Australia's robust employment market. But sub-prime jitters and higher oil prices will trigger greater caution in customers, he says. Gibbs also reckons less borrowing could sap the housing market. CommSec this week linked a slump in data on home sales -- an 8.6 per cent fall in August from the previous month -- on "the latest rate hike".
<p>Fat Prophets senior equities analyst Greg Canavan says a possible slowdown in the mortgage industry could flow through, more slowly, to consumption because "you're not getting the housing wealth effect from rising property prices". But problems with mortgages and consumption might already lurk in credit cards. Figures from the Reserve Bank this week showed the average credit card balance was $3002 in July -- down from $3014 in June. But Australians still owed $41 billion on credit cards. </p>
<p>Lifeline's Fletcher has seen people boost credit card levels to cope with mortgage stress "to pay living expenses like groceries". The JP Morgan/Fujitsu report said that in 1997, the outstanding amount on a credit card equalled roughly one month's disposable income. By 2007, it was three months' worth. "Emerging mortgage stress is being hidden within the growing reliance on credit cards to increasingly fund day-to-day living," it said. </p>
<p>Intersuisse's Russell also points out that until recently, cheap debt had pumped prices of takeover targets. "But when that's changing, which it is, then prices relax back and the fringe competitors drop out," he says. Despite the gloom, Macquarie is predicting 4.25 per cent growth for Australia in fiscal 2008 and says predictions have not been tempered on any sub-prime concerns. "It doesn't seem to be slowing (growth),"
<p>Macquarie's Gibbs says. The threat to Australia's economy lies in overheating, he says. That would be if wages jumped, economic competitiveness slipped and the RBA needed to avert adding easier credit into the system. But what about increasingly dire sub-prime scenarios? Gibbs says for the sub-prime to really smack Australian growth would
require another wave of significant upheaval in US capital markets. That's because the Australian-US economic links are through the financial system and credit markets. "If there was major ongoing disruption there, then that would spill
over," he says. But Gibbs feels this has probably been averted due to the Fed rate cut this week and promise of more if needed. Another dire scenario would be a complete "disengagement from risk-taking", he says. Overseas investors in that case could dump the Australian dollar, which is regarded as a risky asset. "We would then see the cost of capital into Australia to support the current account deficit increase enormously and that would really
crunch the economy," he says. Gibbs argues Australia's real economic activity is more tied to greater Asia. While some might argue that a US collapse could sap China's imports to America, Gibbs says China has a large penetration into the US which adds to stability. </p>
<p>Fat Prophet's Canavan, however, says there could be pain whether a threat is real or perceived. "Because everyone's jumping on to the resources story based on the long-term China thing, I think any news out of China that might spook the market might have an effect on your bigger commodity stocks or your base metals," he says. Tightening credit could mean tightening lending standards, and Lifeline's Fletcher says some borrowers thought they could transfer from a non-bank lender to a bank's lower rates after a few years. "I would suggest the banks are going to look pretty hard at the clients who are going to want to move over," she says. In that case, counsellors like Fletcher might find themselves busier.</p></div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-48336340083633129372007-09-23T15:38:00.001+10:002007-09-23T15:38:50.605+10:00Homeless get younger<div xmlns='http://www.w3.org/1999/xhtml'><div class='article-publish'>
<p class='author'>Mary Bolling</p>
<p class='published-date'>September 21, 2007 12:00am</p>
</div>
<p class='standfirst'><strong style='display: block;'>MELBOURNE'S homeless are getting younger, with more teenagers and families struggling to find a safe place to stay.</strong></p>
<p>A
new report by the Lord Mayor's Charitable Fund shows the number of
people seeking homeless services jumped 26 per cent in the past five
years. </p>
<p>Most are under 35, with many young women and children turning to emergency accommodation to escape domestic violence. </p>
<p>At the same time, charities that provide homelessness support have the highest turnaway rate of any emergency provider. </p>
<p>The report, based on consultation with 11 support agencies, calls
for initiatives to get people out of the homeless cycle, including a
"homeless hotline" and supported accommodation. </p>
<p>Today, the LMCF will gather many of those providers for a round table on the crisis. </p>
<p>The report and round table follow the group's Heart of Melbourne
Appeal launch, which featured local celebrities in a soup kitchen
lineup. </p>
<p>LMCF chief Andrew Chappell said that campaign, and the recent rise
of the Choir of Hard Knocks, were changing attitudes to homeless
people. </p>
<p>"The report lists the statistics, and I don't think it's hard to convince people that it's a tough situation," he said. </p>
<p>"People are really starting to lock into the stories, and realising
that homeless people could just as easily be a relative or a friend." </p>
<p>"But the good news from this report is, the agencies know what needs to be done to fix it. </p>
<p>"There is really no need for anyone to be homeless in Melbourne, when we do live in such a wealthy society </p>
<p>"Even if it's complex and hard and expensive, we can really afford to turn this situation around." </p>
<p>Urban Seed is another agency determined to change attitudes. Chief
executive Gordon Preece takes school and corporate groups on "Urban
Issues" tours, identifying rough-sleeping haunts and syringe bins in
city alleyways. </p>
<p>"They see the top end of the city, the opulence of the Paris end of
Collins St, compared to the incredible need down the alleys -- and it's
literally only a building that separates them," Mr Preece said. </p>
<p>Mr Preece is also keen to highlight the success stories. </p>
<p>Urban Seed's work includes managing Cafe Credo, a free lunch centre that attracts up to 90 people every day. </p>
<p>Old and young, and even a few babies in prams, gather around tables
for the midday meal -- and Mr Preece said the family atmosphere gives
disconnected homeless people a chance to reconnect. </p>
<p>Mr Preece said family breakdown, drugs, and especially an epidemic
of binge drinking, were creating a new generation of homeless youth. </p>
<p>"There is a real binge drinking culture among a lot of teenagers,
and parents often aren't equipped to deal with the sorts of drastic
behaviour that it triggers," he said. </p>
<p>"So the kid might leave home and stay with friends for a while, but
then the friends can't cope with it . . . and often the last place to
go is the street." </p>
<p>More drug use is also resulting in more psychosis. </p>
<p>Last week, another survey of homeless people by Melbourne City
Council found 56 per cent were between 15 and 34. And 8 per cent said
they had children with them -- a total of 20 children with no permanent
home. </p>
<p>Net link: <a href='http://www.heartofmelbourne.org.au/' linkindex='106' set='yes'>www.heartofmelbourne.org.au</a></p></div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-46474399212348826292007-09-23T15:20:00.001+10:002007-09-23T15:20:43.501+10:00Doors close on new home sales<div xmlns='http://www.w3.org/1999/xhtml'><div class='article-publish'>
<p class='published-date'>September 21, 2007 12:00am</p>
</div>
<p class='standfirst'><strong style='display: block;'>NEW
home sales tumbled in August after an interest rate rise exacerbated
poor affordability amid a lack of supply, an industry body says.</strong></p>
<p>Housing
Industry Association figures show new home and unit sales among
Australia's largest builders and developers fell 8.6 per cent in August
to 7712 -- the lowest level since January when sales stood at 7963. </p>
<p>Detached home sales fell 8.9 per cent compared with the previous month, to sit at the lowest level since December last year. </p>
<p>Sales of apartments were down 6.8 per cent and continue to display a flat trend. </p>
<p>HIA chief economist Harley Dale said the main catalyst for the fall
in new home sales during the month was the Reserve Bank of Australia's
25 basis point interest rate rise to 6.5 per cent at the beginning of
August. </p>
<p>He said sales were always likely to fall, with July building
approvals down 1.6 per cent, but the rate increase had added to the
downside pressure. </p>
<p>"You had these specific factors of a rate rise and uncertainty out
of the US on top of a difficult affordability environment," Mr Dale
said. </p>
<p>Problems in the US sub-prime mortgage market spread in August to
create an element of fear in global credit markets, resulting in a rise
in interbank lending rates. </p>
<p>Mr Dale said the outlook for new home sales looked flat due to
continued uncertainty about interest rates and global financial
stability. </p>
<p>"New home sales are trending down again and a failure to arrest this
decline could see sales levels hit fresh lows for the cycle by the end
of 2007," Mr Dale said. </p>
<p>"There is a clear risk of another rise in interest rates in 2008." </p>
<p>The HIA survey showed the volume of new home sales was down in all
states, with Victoria, NSW and Western Australia the worst hit. </p>
<p>Sales fell 19.1 per cent in Victoria, 8.5 per cent in WA, 7.6 per
cent in NSW, 1.8 per cent in South Australia and 0.4 per cent in
Queensland. </p>
<p>CommSec equities economist Martin Arnold said the August rate hike had delivered a heavy blow to the housing market. </p>
<p>"New home sales slumped, with prospective homebuyers put off by the further increase in the cost of owning a home," he said. </p>
<p>"The housing hangover is likely to remain for many months yet, as affordability issues plague the market." </p>
<p>The HIA new home sales survey is compiled from a sample of the largest 100 residential builders in Australia.</p>
<p>- AAP<img src='http://www.news.com.au/common/imagedata/0,,5664567,00.jpg'/></p></div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-68460492046144686202007-09-23T14:51:00.001+10:002007-09-23T14:51:58.222+10:00Homes squeeze hurting<div xmlns='http://www.w3.org/1999/xhtml'><div class='article-publish'>
<p class='author'>Ben Butler</p>
<p class='published-date'>September 22, 2007 12:00am</p>
</div>
<p class='standfirst'><a href='http://www.news.com.au/heraldsun/story/0,21985,22460104-661,00.html'><strong style='display: block;'>NEW home sales have slumped because of the housing affordability crisis, new figures show.</strong></a></p>
<p>The Housing Industry Association said sales of new homes across Australia dropped 8.6 per cent in August. </p>
<p>And the mortgage squeeze shows no sign of slowing down in Victoria. </p>
<p>Supreme Court actions by lenders seeking to repossess land jumped by almost 50 per cent to 2700 in 2005-06. </p>
<p>Numbers rose last financial year, with 2734 actions. </p>
<p>Mortgage industry players blame each other for the pain. </p>
<p>Australian Bankers Association chief executive David Bell said non-bank lenders were at fault. </p>
<p>Mr bell said up to 80 per cent of court applications did not relate to banks, depending on the state. </p>
<p>But the boss of leading non-bank lender Wizard, Mark Bouris, attacked mortgage brokers. </p>
<p>"Unfortunately, a large number of mortgage defaults and
repossessions can be attributed to a small group of irresponsible
brokers and lenders who operate in the sub-prime market," Mr Bouris
said. </p>
<p>Mortgage brokers take a commission for acting as intermediaries between lenders and borrowers. </p>
<p>The head of the brokers' peak body hit back. </p>
<p>Mortgage and Finance Association of Australia chief executive Phil Naylor said the blame game was disappointing. </p>
<p>"The reality is there's no information in the statistics that allows
any of the finger-pointing to have any credence," Mr Naylor said. </p>
<p>Consumer Action Law Centre director of policy and campaigns Gerard Brody said there had been a drop in lending standards. </p>
<p>"It's been too easy for some lenders and brokers to go out and lend to consumers who can't pay back loans," Mr Brody said. </p>
<p>Some lenders give loans for the purpose of taking borrowers' houses when they cannot make the repayments. </p></div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-23915012734931163102007-06-13T04:32:00.001+10:002007-06-13T04:32:00.599+10:00Reducing Whose Burden?<div xmlns='http://www.w3.org/1999/xhtml'><p> <span style='font-family: Arial;'><a href='http://www.1909.org.uk/reducing_whose_burden'>Reducing Whose Burden?<br></br></a>Seasoned Lib Dem Conference-goers
agree that the tax debate at Brighton in 2006 was one of the best since
the Party was formed. The motion was passed by a clear majority,
rejecting a 50% top rate of income tax and embracing a “Green Tax
Switch” from productivity to pollution, with a call for </span><span style='font-family: Arial;'><em>“further policies on land taxation to be developed, including consideration of the Lyons Review</em></span><span style='font-family: Arial;'> </span><span style='font-family: Arial;'><em>when it is published”</em></span><span style='font-family: Arial;'>. Note that it did not merely ask for </span><span style='font-family: Arial;'><strong>existing</strong></span><span style='font-family: Arial;'> policy to be further developed. </span></p>
<p><span style='font-family: Arial;'>FPC moved fast and before Christmas re-convened the Tax Commission (TC) that had brought us </span><span style='font-family: Arial;'><strong><em>Fairer, Simpler, Greener</em></strong></span><span style='font-family: Arial;'>
(FSG), with a new Chair, to specifically address a number of
outstanding issues. The December 2006 FPC agenda paper acknowledged
that </span><span style='font-family: Arial;'><em>“by far the most controversial aspect </em></span><span style='font-family: Arial;'>[of the TC’s work]</span><span style='font-family: Arial;'><em> will be the land tax question”.</em></span><span style='font-family: Arial;'>
Some TC members saw this as an opportunity to replace our commitment to
Local Income Tax (LIT) with a form of land taxation, not necessarily
just – or even at all - at local level. </span></p>
<p><span style='font-family: Arial;'>ALTER has long made clear that it doesn’t object to LIT – or ‘local</span><span style='font-family: Arial; text-decoration: underline;'>ised</span><span style='font-family: Arial;'>
income tax’, as we prefer to call it – so long as a domestic property
tax is retained at national level. As FSG noted, replacing Council Tax
with LIT </span><span style='font-family: Arial;'><em>“will leave the UK in a unique position internationally of having no direct taxation of property at all”</em></span><span style='font-family: Arial;'>. Under Mike Williams’ chairmanship in 2006, the TC accepted this would be a very bad idea, confirming in the same paper that </span><span style='font-family: Arial;'><em>“there is good reason in principle why taxation of property should be retained”</em></span><span style='font-family: Arial;'>. </span></p>
<p><span style='font-family: Arial;'>Development had already begun on
an alternative proposal from Vince Cable for a national ‘progressive
[domestic] property tax’ to ensure the Green Tax Switch wouldn’t be
seen as a sham. As it stands (thanks to LIT), our tax policy actually
increases the burden on wealth creating wage earners by around 3% -
despite Conference asserting that it </span><span style='font-family: Arial;'><em>“supports the principle of using taxes on resource usage to help cut taxes on wealth creation”</em></span><span style='font-family: Arial;'> by endorsing FSG! </span></p>
<p><span style='font-family: Arial;'>The Brighton debate and outcome showed that Conference understands that </span><span style='font-family: Arial;'><em>“‘ability to pay’ can relate to income or wealth or both”</em></span><span style='font-family: Arial;'>,
and that it wants tax policies which tap into wealth. And the most
important untapped and rapidly growing source of wealth in Britain
today is the land under our houses. </span></p>
<p><span style='font-family: Arial;'>Regrettably, it has become
ingrained in the minds of the Party’s economically illiterate that “Axe
The Tax” means ‘no more domestic property tax’. Even senior figures in
the Party have been convinced by their own unsubstantiated propaganda
that abolishing Council Tax (CT) whilst introducing a national Land
Value Tax (LVT) would be an electoral disaster. This claim is made
without any polling evidence. All the Party has ever done is compare
LIT with CT. No poll has asked voters if they might prefer a ‘fairer
property tax’ to LIT. The limited real evidence we do have, from
residents’ surveys conducted in Newbury over the past nine months,
clearly indicate that an overall majority of voters would prefer a
fairer property tax to all other options, with twice as many supporting
this as LIT. “Interesting”, said Chris Rennard on hearing this. </span></p>
<p><span style='font-family: Arial;'><strong><em>Reducing the Burden</em></strong></span><span style='font-family: Arial;'>
is the title of the draft policy paper now emerging from a seemingly
semi-detached TC under its new chair Dick Newby. It is highly doubtful
whether it meets Conference’s wish to develop new land tax policies,
and it will be interesting to see what the Federal Policy Committee
(FPC) does about that. The draft paper does at least offer a solution
to the duplicity of a 2p Green Tax Switch and a 4.5p LIT rate, which
currently raises the overall burden on jobs. Let’s hope both FPC and
Conference approve of that anyway! </span></p>
<p><span style='font-family: Arial;'>But it is the absence of any
coherent policy on taxing the unearned wealth accruing to the owners of
landed property that continues to confound any Liberal Democrat claims
to care about the young and economically excluded. Despite
acknowledging in FSG that </span><span style='font-family: Arial;'><em>“tax reform should take account of inter-generational </em></span><span style='font-family: Arial;'>[wealth] </span><span style='font-family: Arial;'><em>issues”</em></span><span style='font-family: Arial;'>, there was nothing in FSG - and there remains nothing in</span><span style='font-family: Arial;'><strong><em> Reducing the Burden</em></strong></span><span style='font-family: Arial;'> - that actually does anything to address this. </span></p>
<p><span style='font-family: Arial;'>The arbitrary and widely trailed
million pound property tax is there, but it is a sorry shadow of what
might have been achieved – without compromising LIT! It smacks of
gesture politics and has already been dubbed an “envy tax”. The problem
remains that, when CT is axed for LIT, the vast majority of homes will
be untaxed. Average prices will rise by over £20,000 and this Party
will have further exacerbated the growing generational crisis in
affordable housing. </span></p>
<p><span style='font-family: Arial;'>There are 2 other key policy
papers also in production that will be debated by Conference this
autumn; on Poverty & Inequality and on Climate Change. Although
both will no doubt contain worthy attempts at reversing the rich-poor
divide and rising global warming, the opportunity for the concurrent
Tax paper to lead the way with a coherent fiscal thread now seems
certain to be lost. Tax reform is fundamental to tackling wealth
inequity and the efficient use of finite resources. Taxing land values
is a critical part of the solution. While all 3 papers may nod in the
right direction, none seem able or willing to commit. </span></p>
<p><span style='font-family: Arial;'>Who cares? The young do for a
start. By a majority of 10 to 1, the 2007 LDYS Spring Conference passed
a motion calling for LVT and not LIT to replace CT. The next generation
has a vested interest in shifting tax to a sustainable base –
economically and environmentally. There are also many Green Lib Dems
who will be unhappy to see no further developments on LVT – arguably
the “greenest tax of all”. Every other eco-tax, with the exception of
LVT, will erode its own yield. They must do, or they aren’t changing
unsustainable behaviour! </span></p>
<p><span style='font-family: Arial;'>Just before the TC was re-convened, no less an authority than UN-HABITAT asserted that </span><span style='font-family: Arial;'><em>“LVT
is the appropriate instrument for the urgent fight against global
inequality and poverty….. Without land tax there is a vast amount of
land speculation which is pushing the price of land sky high, making it
unaffordable for the poor in cities.”</em></span><span style='font-family: Arial;'>
This was part of a contract to develop an on-line Global Land Tool to
help public officials understand and implement LVT. It should be ready
by August, the product of collaborative work by 30 experts in over a
dozen countries, led by an American Green Party activist. </span></p>
<p><span style='font-family: Arial;'>Yet we have a tax policy that will
remain unsustainable and unfair to millions, despite two years of
discussion and FSG’s highlighting the shortcomings, as well as the
solution. A century ago, the great reforming Liberal Budget of 1909 was
inspired by Henry George’s seminal work </span><span style='font-family: Arial;'><strong><em>Progress and Poverty</em></strong></span><span style='font-family: Arial;'>
– in its very title encapsulating the essential truth: that wealth
arising from economic progress which accrues, untaxed, to the ‘owners’
of land or natural resources will inexorably lead to inequality,
inefficiency and growing injustice. </span></p>
<p><span style='font-family: Arial;'>Average house prices have been </span><span style='font-family: Arial;'><strong>rising</strong></span><span style='font-family: Arial;'> by an amount equivalent to </span><span style='font-family: Arial;'><strong>twice</strong></span><span style='font-family: Arial;'>
the average annual take-home wage. No wonder gambling attracts the poor
and families in rented housing despair: social exclusion is largely the
product of a failure to tax land values. Two hundred years after
Parliament ended slavery, will Liberal Democrats wilfully flinch from
ending the enslavement by poverty that failing to recover ‘economic
rent’ inflicts on asset poor workers? </span></p>
<p><span style='font-family: Arial;'>TC was directed by Conference and FPC to deal with the </span><span style='font-family: Arial;'><em>“practical issues which would have to be resolved to make a property tax workable”</em></span><span style='font-family: Arial;'>.
Yet when it came to the scheduled TC meeting on domestic land and
property tax, the Chair immediately called for and won a vote to stop
ALTER’s detailed paper on the subject even being discussed! Apart from
the aforementioned High Value Property Tax, which may or may not be
billed in the paper as a step towards LVT, the TC has really only
developed our existing policy to replace business rates with Site Value
Rating, the local form of LVT. It remains the case that no “further
policies on land tax” are in the new tax paper at all. <br></br>The first
practical issue is the registration and valuation of all land sites. If
we embark on LVT/SVR for commercial land only, we multiply the problems
for valuers and tax administrators. Far simpler to assess all
commercial and domestic land from the outset, leading to a single
unified property tax system with no artificial boundaries between
residential and non-residential land. </span></p>
<p><span style='font-family: Arial;'>Since Labour came to power, the
market value of the nation’s housing stock has tripled to over £3.5
trillion. There has been only a 5% increase in housing stock, so almost
the entire rise in value has been due to land – not bricks and mortar.
By levying a mere 0.5% annually of the increase in value under Labour
(about £1000 on a £300k house) and assuming £100k tax-free ‘Homestead
Allowance’, we could raise over £10 billion in revenue, allowing that
sum to be cut from income tax and other economically damaging imposts.
It would ensure a ‘soft landing’ when the house price bubble eventually
bursts and we could aim to maintain house prices thereafter in line
with inflation. <br></br>We can sell LVT as just, sustainable and
economically sound: it needs to be introduced carefully but it is far
more important to introduce it now. It would be contemptibly foolish if
we allowed our only property tax, however regressive, to be abolished
without a progressive replacement. We will have betrayed posterity as
well as our Liberal past. </span></p>
<p><span style='font-family: Arial;'>Unless we join up our thinking
with LVT, the ‘reduced burden’ of taxes to which the TC’s draft policy
paper refers will be enjoyed not by the poor, the young or tomorrow’s
entrepreneurs, but by the asset rich, the comfortable and their
unproductive tax advisers. The wealth divide will widen further and the
climate – socially, economically and ecologically – will get a whole
lot worse. <br></br></span></p>
<a title='Contact Tony Vickers' target='_blank' href='http://www.1909.org.uk/user/5/contact' linkindex='14' set='yes'><span style='font-family: Arial;'><strong>Tony Vickers</strong></span></a><span style='font-family: Arial;'> </span><span style='font-family: Arial;'>is
a lecturer in ‘green taxes’ and researcher on land policy at Kingston
University, a councillor in Newbury and Chair of the Lib Dem campaign
group Action for Land Taxation and Economic Reform (ALTER) </span><span style='font-family: Arial; color: rgb(0, 19, 254); text-decoration: underline;'>www.libdemsalter.org.uk</span><span style='font-family: Arial;'> He has been a member of the Tax Commission since June 2005. </span></div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-10950535395282703072007-06-10T22:04:00.001+10:002007-06-10T22:04:07.033+10:00BAGHDAD -- An al-Qaida-affiliated insurgent group is giving Christians in Baghdad a stark choice.<div xmlns='http://www.w3.org/1999/xhtml'>Militant threat: convert or else<br></br><br></br>June 09, 2007 12:00am<br></br><br></br>Christian families flee a Muslim imposed Tax.<br></br>The 'jizya' pay it, convert or get out.</div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-79006230917744964872007-06-10T21:45:00.001+10:002007-06-10T21:45:36.700+10:00Tower hunt for disease source<div xmlns='http://www.w3.org/1999/xhtml'>Tower hunt for disease source.
Footscray and Seddon Cooling Systems 1 of 16 out of order in area. Outbreaks of Legionella bacteria are linked to towers.</div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-10995538.post-43873546563342038902007-06-10T21:35:00.001+10:002007-06-10T21:35:29.916+10:00Home buyers riding razor's edge<div xmlns='http://www.w3.org/1999/xhtml'><a href='http://www.news.com.au/heraldsun/story/0,21985,21874299-662,00.html?from=public_rss'>Home buyers riding razor's edge</a><br></br><br></br>Mary Bolling<br></br><br></br>June 09, 2007 12:00amIRST home buyers are facing the highest prices, biggest loans, and longest mortgage repayments ever.<br></br><br></br>But as desperate families borrow close to 100 per cent of their home's price, experts predict looming interest rate rises could push plenty of family budgets over the edge.<br></br><br></br>Australian Bureau of Statistics data yesterday showed more people were borrowing to get into the market.<br></br><br></br>Earliest ABS figures available show Melbourne's average first-home loan size in July 1991 was $67,500.<br></br><br></br>Ten years ago, in March 1997, it had jumped to $101,300 and this March it was up to $231,600.<br></br><br></br>Swinburne University housing researcher Terry Burke said it's now normal for first-home buyers to sign 30-year mortgages, and to borrow 95 per cent of the price of their home.<br></br><br></br>"Many first home buyers are right on the margins and once they've secured their house, most of them have very little savings," Mr Burke said.<br></br><br></br>"It would only take a very small increase in interest rates to push them over the edge."<br></br><br></br>This month, Housing Industry Association figures showed the great Australian dream has never been more expensive, with the median first-home price at $370,000.<br></br><br></br>The average income of households buying their first home is up to $93,400.<br></br><br></br>Australians for Affordable Housing spokesman David Imber said those figures are clearly shutting out average Australians.<br></br><br></br>"House prices are growing at more than double the rate of income growth," Mr Imber said.<br></br><br></br>"We keep hearing about low unemployment, but the average Australian wage is $55,000 a year -- being in an average or above-average job doesn't allow home ownership."<br></br><br></br>Mr Imber said high prices were creating a social divide between home owners and renters.<br></br><br></br>"It really is quite shocking we could have a generation of renters" he said.<br></br><br></br>Mr Imber wants government policies to help first home-buyers compete against investors.<br></br><br></br>Recent first-home buyer Paul Carboon, 36, agrees young Australians need help entering the market.<br></br><br></br>With his wife Leanne, and two young children, Mr Carboon hunted for months before securing their Notting Hill home.<br></br><br></br>"Trying to buy is a full time job and it's very depressing -- first to sign up for a 30-year loan, then to keep missing out at auctions," he said.<br></br><br></br>"And the people who are buying their third and fourth investment property are the ones that we were competing against."</div><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-64446069876490552302007-05-29T18:40:00.000+10:002007-05-29T18:59:19.848+10:00Toorak mansion sold to mystery buyer for a record $18 million.After a knock on the door and a walk thru, an unknown buyer puts an offer. The buyers advocate compares the sale to an 1880's gold rush.
The 100-square two-storey English style-mansion was sold about five years earlier for $5.4 million. A little later the parcel of land next door (a tennis court) was bought for another $1.2 million. About $1 million was spent on renovations.
As is usual for titleholders of highly prized sites, criminal fines for insider trading, & allegations of tax evasion using a Charitable Foundation plagued the vendor.
While the price is believed to be a record, it might be trumped by a bid for a similar site being marketed as Stonnington mansion.
29 May 2007
Craig Binnie and Nicole Lindsay
<a href="http://www.news.com.au/heraldsun/story/0,21985,21810172-661,00.html?from=public_rss">Herald Sun</a><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-82887853975123380552007-05-09T11:28:00.000+10:002007-05-09T11:32:36.129+10:00April Foreclosure Filings More Than Double Over 2006<a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=alXig2Cqe.rA&refer=home">(Update1)</a>
<blockquote> By Bob Ivry
May 7 (Bloomberg) -- U.S. homeowners entered the foreclosure process in April at more than double the rate of a year ago as tightening credit made it more difficult to refinance and a swelling supply of unsold homes made it tough to sell.
The number of homeowners in all three phases of foreclosure rose last month over the same period a year ago, according to Sacramento-based Foreclosures.com, which gathers data from county courthouses nationwide. Those receiving their first notice of foreclosure from a bank climbed 127 percent, those with homes going up for sale by auction jumped 164 percent and those whose homes were repossessed by banks went up 40 percent.
Eight of 10 subprime loans, given to borrowers with bad or limited credit histories, adjust over time to higher interest rates and many homeowners can no longer afford their mortgages. With existing home sales at a four-year low, it's more difficult to sell because there are so many homes on the market.
``The housing boom was a house of cards,'' said Alexis McGee, president of Foreclosures.com. ``A lot of people who are living beyond their means and borrowing from Peter to pay Paul find that it's starting to catch up with them. We're seeing the effects of aggressive lending and minimal standards for underwriting.''
The number of foreclosure filings decreased in April in all three categories compared with March, Foreclosures.com said. Notices of default dropped 16 percent, auctions decreased 12 percent and bank repossessions fell 14 percent.
The March 2007 numbers compared with a year earlier were similar to the increases of April 2007 over April 2006. First filings increased 126 percent in March 2007 compared with March 2006, notices of auction climbed 121 percent and the number of bank repossessions grew 51 percent, Foreclosures.com said.
Avoiding Foreclosure
The numbers show that many homes that begin the foreclosure process don't end up owned by banks, McGee said.
``A lot of these homeowners are getting new financing or they're selling it before the auction,'' McGee said. ``The owner is able to figure out a way to get his house in order before his house is taken away.''
In the first four months of this year, homes in all three phases of the foreclosure process increased from the same period a year ago, Foreclosures.com said. Notices of default and auctions more than doubled, while bank takeovers, or REOs for ``real estate owned,'' rose 39 percent.
Purchases of existing homes dropped in March to an annual rate of 6.12 million, from 6.68 million in February, the biggest decline since January 1989, said the Washington-based National Association of Realtors. Sales fell 11.3 percent compared with a year earlier.
According to Zurich-based Credit Suisse, 82 percent of subprime mortgages have an adjustable rate provision, meaning that payments start with low or ``teaser'' rates and adjust to a higher rate after a set number of years.
To contact the reporter on this story: Bob Ivry in New York at bivry@bloomberg.net .
Last Updated: May 7, 2007 17:36 EDT
</blockquote><div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-10995538.post-91557483329429931082007-05-08T16:15:00.000+10:002007-05-08T16:15:15.797+10:00What the gatekeeper saw<a href="http://putlandletters.blogspot.com/2007/02/rate-change-will-worsen-rent-squeeze.html#cooliris">Rate change will worsen rent squeeze</a>
28/3/2007
At present, council rates in NSW are based on the value of land alone. If the rating base is changed to the value of land plus buildings, as suggested by Noel Taylor (ST Letters, 4 Feb 2007), the consequences will include the following:
* Land owners who build new accommodation or extend existing accommodation will be penalized with higher rate bills. So there will be less building and extending. The shortage of rental accommodation will worsen, making rents less affordable, and jobs will be lost in the building industry.
* Families who modify their homes at great expense for the benefit of disabled members will be hit with higher rate bills.
* Valuations of buildings will become critical for tax purposes and will therefore need to be more accurate, hence more intrusive, involving more internal inspections.
* Landlords will allow properties to deteriorate because run-down buildings will be taxed less than well-maintained buildings.
Land-value rating avoids these problems because the land, unlike any buildings erected on it, is not the product of any human effort that can be deterred by taxation.
— Rejected by the Sunday Telegraph (Sydney).
Posted by G.R. Putland.<div class="blogger-post-footer">Enter your land price concerns as a quotable quote on the Site Rating Defence Alliance blog.</div>Unknownnoreply@blogger.com0