David Miliband calls for mansion tax
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Shadow foreign secretary and Labour leadership candidate David Miliband is calling for a “mansion tax” on homes worth more than £2m to raise money for the poorest in society.
In an interview with the Evening Standard, Miliband said the tax would raise £1.7bn which he would use to restore housing benefit for the least well-off.
The proposals would see owners paying a 1 per cent levy on a property’s value above £2m.
A home worth £3m would pay a minimum of £10,000 extra a year, while a home worth £4m would pay £20,000.
The idea was tabled in the Liberal Democrat’s general election manifesto but it did not survive negotiations with the Conservative party.
Miliband said the money raised would allow Labour to reverse the Government’s proposals for cutting housing benefit costs by cutting the current rates paid on behalf of tenants.
He told the Evening Standard: “We have calculated that a mansion tax of 1 per cent on homes of more than £2m would more than cover the money that they claim to be saving from housing benefit reforms.”
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Readers' comments (11)
Anonymous | 3 Aug 2010 10:56 am
ironic, lib dems have a policy idea, get into government and jettison it and labour nicks the idea!
D Milliband will win, but won't get the chance to do anything about it for 5 years.
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Anonymous | 3 Aug 2010 12:15 pm
Politics at its best/worse depending on your point of view.
I'd be surprised if D Milliband really wants or believes in this. It is however a good way to stir up divisions between the coalition parties.
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Jon T | 3 Aug 2010 12:26 pm
If voters are really fooled by this Blair-lite charlatan, they deserve him.
George Osbourne was once quoted as saying, quite accurately, I think, that Labour Governments always end up leaving the country broke. I don't see how what are very likely to be empty promises of Robin Hood-esque reform will cure the far greater and fundamental problem of Labour's massive fiscal irresponsibility.
£1.7bn? I bet he'd blow that on the furniture alone.
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Anonymous | 3 Aug 2010 2:41 pm
What proposal next ??
A Window Tax ??!!!!!!!
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Harry | 3 Aug 2010 3:09 pm
So the rich pay every year for housing benefit for the poor? What a stupid communist idea.
If I want to give money to the less well off I will look for such charities.
Such daft rhetoric is the opposite to evolution and is a major reason why we as a nation are decline.
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Anonymous | 3 Aug 2010 4:54 pm
Harry mentioned evolution - and I was thinking we need a REVOLUTION !!!!
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Anonymous | 3 Aug 2010 4:59 pm
I think Harry should check with Charles and Wills before taking this one any further.
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shaks | 3 Aug 2010 5:18 pm
Well am I releived or what. My house is worth £1,999,000.
Why is that parties in opposition have loads of ideas but when in govermnent suddenly develop amnesia. This silly rule wouldn't work. All ofa sudden every large house will come down in price below £2M and if a surveyor says it's only worth £1.99M then I'm afraid that's all its worth. Have you ever tried arguing with a surveyor over a down-valuation? I was one told by a surveyor that he was god and that his word is final despite the mountain of comps that I had proving to the contrary. Will a home owner be able to defend his estimated value of sub £2M if he can find a similar god to confirm the figures?
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Anonymous | 3 Aug 2010 6:25 pm
Milliband is more stupid than previously thought.
If Milliband is so concerned about the poor, he should advocate for less MPs and less MPs expenses. That would surely raise enough money. Either that or poor people could live in the Duck houses, rent free.
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Sean | 4 Aug 2010 8:11 am
The policy of envy. Has he never heard the term asset rich cash poor. This is the usual socialist rhetoric that you expect from old labour. Instead of taxing the rich to pay for housing benefit why not come up with policies which will get these people into work so they dont have to claim housing benefit.
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