Tax efficiency

There’s a very good article by Janan Ganesh in the Financial Times on how the current UK tax regime privileges housing investment rather than a potentially more productive allocation of economic resources. I’ve seen most of the arguments before but haven’t really seen them set out so clearly and powerfully. It provides a broader picture than the London-centric focus on overseas investors. It also hints at some much deeper structural factors about the implications of such a bias to housing investment for the political alignments and the distribution of wealth. If you haven’t seen it, it’s also worth reading Andrew Rawnsley’s piece in the Observer last Sunday on the tension between democratic processes, the planning system and strategic infrastructure investment.

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