Liberal Democrats propose annual tax on expensive houses

The Liberal Democrats are up to their silly ways again. Their Treasury spokesman is proposing an annual 'wealth tax' for people whose houses are valued at above £1m. The tax would be levied at 1 per cent of the value of the house.

Leave to one side the fact that such homes will attract capital gains tax on sale, or, possibly inheritance tax on death of the owner. Even leave aside that the householders are probably already paying punitive rates of council tax, with more to come when the dreaded valuation exercise is completed.

Leave all those aside for now.

What Vince Cable, their Treasury Spokesman, has failed to realise, is that the increase in the value of house prices is mainly for reasons outside the control of the the homeowner. House prices rise for a many reasons, inflation, market action, and oftentimes, even Government action. The homeowner is not responsible for any of these, but he is being called upon to pay an annual 'wealth' tax, thereby penalising him for actions outside his control. Such idiocy. In fact, probably the only way a homeowner can contribute to the value of his house is by carrying out improvements, for which he would have laid out money from his own pocket. This, apparently, is not enough for the greedy, clueless Liberal Democrats, who regard private wealth as something to be stolen from its owners, and then wasted on their latest harebrained schemes.

The Fisherman is now convinced that, at the very least, a rudimentary course in economics must be compulsory for any aspiring politician. This course must come complete with an examination at the end, and a pass mark of not lower than 70 per cent.

The Fisherman will volunteer to be a tutor.