by John Galt
January 21, 2012 22:45 ET
The U.K. Telegraph’s lead story at this moment is what I would term a shocker of an idea soon to come to the United States in a desperate attempt to raise funds to stabilize the real estate industry and prevent lower income homeowners from losing their homes due to foreclosure or delinquency:
(click on the title above to read the story in full)
Vince Cable, the Liberal Democrat Business Secretary, is pushing for a mansion tax to be introduced on properties worth more than £2million in this year’s Budget.
While the policy is likely to be opposed by George Osborne, the Chancellor, Mr Cable said that he had spoken to Conservative MPs who backed the plan.
“A mansion tax is still very much on the agenda – it is a very good idea,” Mr Cable told The Sunday Telegraph.
“It is good for two reasons,’’ he said. ”It would constitute a tax on wealth rather than income, which we believe to be right, and also in economic terms it creates the right sort of incentives for the property market.”
Mr Cable added that it was “perverse” that rich “foreigners” could buy expensive properties in Britain and contribute just £1,000 a year in council tax towards the public finances.
Let the sentences from the story by Robert Watts sink in. Once this idea gets traction in the liberal world and the Washingtonian elites sniff this out, which they always do, it will be proposed to justify a similar tax in this country to provide funding for bailing out delinquent homeowners and other such nonsensical programs. The sad part about this is that if properly phrased and structured by the politicians, they will get the full support of the banksters to protect their investments and guarantee the government continues to bail them out. Prepare for an onslaught of bizarre ideas like this one as the election period moves forward in both countries during 2012.