In Britain, that figure is an outrageous 70% of land owned by 1% of the country’s population. This level of concentrated ownership should raise serious alarm bells regarding equity in our property tax code. The council tax system has for some time been reaching boiling point. This has led to conversations about needed reforms both immediately and longterm, primarily around the implementation of a proportional property tax (PPT). This proposed change aims to address issues such as wealth inequality and housing affordability, exemplified by personal stories like that of Linda Buckingham.
Linda Buckingham’s family history goes much further back than that — about 100 years before, to be exact. She was forced out of the city, as home costs rose through the roof. After moving, she found that home in her new neighborhood of Ickenham was just as costly. Even with the best efforts and considerable investment in a big mortgage for a little house, Buckingham’s financial stress continues. In sharp relief, most of her friends living in other counties have large, tree-studded lots at a fraction of the cost.
After all, today a concentrated system of land ownership is arguably the number one driver of gross wealth inequality. Ironically, this crisis is exacerbating housing insecurity. Larry Elliott, reform proponent and author of The Cost of Cutting Loose, believes that shrinking offers a better alternative for people like Buckingham. Yet the proposed PPT is concerning for a different reason, one that relates to increasing tax burdens at the federal level. If the plan were ever to be implemented in Ickenham, Buckingham could see a jaw-dropping 60% to 70% increase in her property tax.
The Fairer Share campaign has provided a thoughtful, fairer solution to address that problem. They propose that any successor to council tax be limited to an increase of no more than £100 a month. This proposal is an attempt to strike a fair balance between the reasonable needs of local authorities and the financial abilities of ordinary homeowners. For municipalities, the advantages of a proportional property tax are really obvious. In Ickenham, local authorities are anticipating an increase in revenue of at least 60%. This funding increase will help reconnect neighborhoods divided by highways, replace crumbling bridges, maintain transit systems and more.
In Bolton, that picture is very different. A statewide proportional property tax would reduce statewide revenue by nearly a quarter. Householders in Bolton with homes worth £150,000 will benefit from a £203 reduction in their tax burden. Under this replaced scheme, their taxes might plummet by as much as 73%!!
Carol Wilcox, Secretary of the Labour Land Campaign, thinks we need to break up our existing tax model. She maintains that this shift is necessary to make the system fairer and better address the inequities so many Britons face. The debate continues to boil over. Thames Ditton, Surrey resident and parent Jeremy Scroxton. These residents are already taking a hard look at how these proposed changes will improve or hurt their financial bottom line.