The Conservative and Lib/Dem Government has done the opposite to cutting Council Tax. In order to fund and protect services, cuts to the Government grant have caused Councils to raise taxes as well as cut services.
The Council tax based on size of property pays no consideration to income or wealth. It remains a totally unjust tax. Reducing or abolishing the unfair tax is the right direction to go.
It is the wrong way to claim against GDP or added value for funding social programmes.
The opposite should be the case. The alternative would mean that Council Tax would be abolished in favour of increasing direct Government funding for Council run services.
Where manufacturing and capital is concentrated should meet the national demand for service funding. There would be no need to service debt in future from local cuts if this became the case.
The idea of a “Mansion Tax” is a neo-liberal idea that extracts from existing capital on the false premise that someone who has a bigger house is wealthy. It is nothing short of a progressive increase on rates as has existed previously.
It also creates the impression that certain oligarchs from abroad can be taxed because of their investments in land and property from abroad. It misdirects sentiment about class.
It carries the false notion that the title “mansion” will attract people to the idea that it is the real rich who are being hit as they are the traditional aristocratic classes and landowners who are the ones who should pay. The reality it is the Financial oligarchy and big Monopolies who are the real tax avoiders who own and control the wealth.
It is these Monopolies who should be restricted. The workers are the real creators of wealth and should be able to claim against what they create. Why should it be that the burden falls on workers through taxes? The wages workers earn are simply seen as the source of value that should be taxed.
Instead added value should be claimed at source against profits.
In the final analysis servicing debt or collecting taxes comes from wealth created. The question is should it come from workers tiny purses and pockets or from the real owners of production and controllers of wealth distribution – the capitalists?