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Economics Professor at Chulalongkorn Uni says proposed land tax will help in spreading wealth


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Economics Professor at Chulalongkorn University says proposed land tax will help in spreading wealth

BANGKOK, 7 June 2016 (NNT) - Dr Somprawin Manprasert of the Faculty of Economics at Chulalongkorn University said the bill on land and building taxation proposed in the Cabinet meeting will aid in wealth distribution.


Dr Somprawin said the bill will serve as a positive beginning in tax reform. Existing legislation had allowed the wealthy to consolidate property, creating economic inequality. The proposed law seeks to deter people from hoarding real estate by imposing a tax on individuals with land valued at over 50 million baht. The individuals will then be compelled to liquidate their properties into other forms of assets.

Dr Somprawin argued that the shift from land to other assets will not be considered a form of tax evasion, but will further the goal of spreading wealth. The Chulalongkorn economist suggested that the government thoroughly enforce the new tax code in order to reap the greatest benefit from its implementation.

According to the bill, individuals who own land valued over 50 million baht or possess a second home will need to pay tax not exceeding 0.5% of the property's value. Agricultural lands will be taxed at a rate not exceeding 0.2%, while commercial buildings and industrial plants will be taxed at a rate not exceeding 2%. Owners of undeveloped property will need to pay tax not exceeding 5%.

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"... by imposing a tax on individuals with land valued at over 50 million baht."

However there is no stipulation about taxing land owned by corporations. These people didn't acquire land valued at over 50 million baht by being stupid. They are well aware of how people in the west get around these taxes through dummy corporations and creative accounting. All this is going to do is force them to move their money around, but still in their control.

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If that were true, why has it not happened before? Why are people still poor? Why are the poor getting poorer and the rich getting richer? And, no more of that "but, but, but, TAKSIN" s h i t.

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If that were true, why has it not happened before? Why are people still poor? Why are the poor getting poorer and the rich getting richer? And, no more of that "but, but, but, TAKSIN" s h i t.

Main cause - living beyond one's means and getting into debt.

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"BANGKOK, 7 June 2016 (NNT) - Dr Somprawin Manprasert of the Faculty of Economics at Chulalongkorn University said the bill on land and building taxation proposed in the Cabinet meeting will aid in wealth distribution."

Will help. At some unpecified time in the future.

So long as it's not now.

There people are geniuses at prediction. Not too good at auditing though. Or history. Or anything based on fact and not crystal-gazing.

W

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Oh very sad. An easily avoidable tax. Even though we have land I was hoping for a broad based land tax to help fix the chemotherapy look of Bangkok and derive some revenue for the government. Now there will be no incentive to develop all those empty bogs of land which act as land fills and garbage dumps throughout the city. Shame and pity. Nothing changes. Tough decisions are kicked down the road.

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A step in the right direction.
Parallel it
would be also important, to fight the money laundering.
You can buy here an apartment block for 200 million baht.
Need only to bring the money in two suitcases to the land registry office.
No one ask here stupid questions, like where the money comes from.

If an independent tax-office would add up the previous income f
rom all higher-ranking officials (and many positions are poorly paid), and then would make an assets owned estimate, many could not explain where all the money comes from.

For example:

A senior police officer gets officially 50,000 Baht per month.
Let say, he has worked as a policeman for 20 years.
So his added up income would be 12 Million Baht, without even having used one baht.
How can then, the same person (without having bank debts) buy an apartment house, resort, hotel, or what ever
and pay cash in 3-digit millions?

Here a functioning state would set the lever.
Alone the tax payments, tax penaltys and the the collection of ill-gotten money, could generate billions for the state in a very short time.

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No doubt the proposed land tax bill could be more extensive, closing loopholes already, etc., etc.

On the other hand there is no land tax bill now. The Surayut government in 2007 was working on one but dropped it as some strongly suggested that such should be left to elected governments. That's NINE years ago.

Make the first step and start working on the next.

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Oh very sad. An easily avoidable tax. Even though we have land I was hoping for a broad based land tax to help fix the chemotherapy look of Bangkok and derive some revenue for the government. Now there will be no incentive to develop all those empty bogs of land which act as land fills and garbage dumps throughout the city. Shame and pity. Nothing changes. Tough decisions are kicked down the road.

"the chemotherapy look of Bangkok"

cheesy.gifcheesy.gifcheesy.gif

Love it. And so true... 10/10 my friend.

W

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A step in the right direction.

Parallel it would be also important, to fight the money laundering.

You can buy here an apartment block for 200 million baht.

Need only to bring the money in two suitcases to the land registry office.

No one ask here stupid questions, like where the money comes from.

If an independent tax-office would add up the previous income from all higher-ranking officials (and many positions are poorly paid), and then would make an assets owned estimate, many could not explain where all the money comes from.

For example:

A senior police officer gets officially 50,000 Baht per month.

Let say, he has worked as a policeman for 20 years.

So his added up income would be 12 Million Baht, without even having used one baht.

How can then, the same person (without having bank debts) buy an apartment house, resort, hotel, or what ever

and pay cash in 3-digit millions?

Here a functioning state would set the lever.

Alone the tax payments, tax penaltys and the the collection of ill-gotten money, could generate billions for the state in a very short time.

Fantasy.....the rich and connected avoid taxes with ease.....brining in a land tax will mean nothing to them....

How can this initiative ever help in spreading wealth.......never has worked anywhere else!

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A step in the right direction.

Parallel it would be also important, to fight the money laundering.

You can buy here an apartment block for 200 million baht.

Need only to bring the money in two suitcases to the land registry office.

No one ask here stupid questions, like where the money comes from.

If an independent tax-office would add up the previous income from all higher-ranking officials (and many positions are poorly paid), and then would make an assets owned estimate, many could not explain where all the money comes from.

For example:

A senior police officer gets officially 50,000 Baht per month.

Let say, he has worked as a policeman for 20 years.

So his added up income would be 12 Million Baht, without even having used one baht.

How can then, the same person (without having bank debts) buy an apartment house, resort, hotel, or what ever

and pay cash in 3-digit millions?

Here a functioning state would set the lever.

Alone the tax payments, tax penaltys and the the collection of ill-gotten money, could generate billions for the state in a very short time.

Fantasy.....the rich and connected avoid taxes with ease.....brining in a land tax will mean nothing to them....

How can this initiative ever help in spreading wealth.......never has worked anywhere else!

Works very well in the US and EU. Thus the need to hide wealth elsewhere in another form instead of hoarding land in one's own country.

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Property taxes always start out reasonable and low but once the laws are enacted then governmental socialist polices take over and before you know it everyone with 1/2 of a fruit tree are paying their so called fair share. Tis true Thailand has an old moneyed class that has just about locked up most valuable assets and even blocked cheaper imports directly or via the VAT if their business is manufacturing the same item. All I can say is warning and good luck once they start down this road.

"The father and daughter talk"

A young woman was about to finish her first year of college. Like so many others her age, she considered herself to be very liberal, and among other liberal ideals, was very much in favor of higher taxes to support more government programs, in other words redistribution of wealth.

She was deeply ashamed that her father was a rather staunch conservative, a feeling she openly expressed. Based on the lectures that she had participated in, and the occasional chat with a professor, she felt that her father had for years harbored an evil, selfish desire to keep what he thought should be his.

One day she was challenging her father on his opposition to higher taxes on the rich and the need for more government programs.

The self-professed objectivity proclaimed by her professors had to be the truth and she indicated so to her father.

He responded by asking how she was doing in school.

Taken aback, she answered rather haughtily that she had a 4.0 GPA, and let him know that it was tough to maintain, insisting that she was

taking a very difficult course load and was constantly studying, which left her no time to go out and party like other people she knew. She didn't even have time for a boyfriend, and didn't really have many college friends because she spent all her time studying.

Her father listened and then asked, "How is your friend Audrey doing?"

She replied, "Audrey is barely getting by. All she takes are easy classes, she never studies and she barely has a 2.0 GPA. She is so popular on campus; college for her is a blast. She's always invited to all the parties and lots of times she doesn't even show up for classes because she's too hung over."

Her father asked his daughter, "Why don't you go to the Dean's office and ask him to deduct 1.0 off your GPA and give it to your friend who only has a 2.0. That way you will both have a 3.0 GPA and certainly that would be a fair and equal distribution of GPA."

The daughter, visibly shocked by her father's suggestion, angrily fired back, "That's a crazy idea, how would that be fair! I've worked really hard for my grades! I've invested a lot of time, and a lot of hard work! Audrey has done next to nothing toward her degree. She played while I worked my tail off!"

The father slowly smiled, winked and said gently, "Welcome to the conservative side of the fence."

If you ever wondered what side of the fence you sit on, this is a great test!

If a conservative doesn't like guns, he doesn't buy one. If a liberal doesn't like guns, he wants all guns outlawed.

If a conservative is a vegetarian, he doesn't eat meat. If a liberal is a vegetarian, he wants all meat products banned for everyone.

If a conservative is down-and-out, he thinks about how to better his situation. A liberal wonders who is going to take care of him..

If a conservative doesn't like a talk show host, he switches channels. Liberals demand that those they don't like be shut down.

If a conservative is a non-believer, he doesn't go to church. A liberal non-believer wants any mention of God and Jesus silenced.

If a conservative decides he needs health care, he goes about shopping for it, or may choose a job that provides it. A liberal demands that the rest of us pay for his.

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Property taxes always start out reasonable and low but once the laws are enacted then governmental socialist polices take over and before you know it everyone with 1/2 of a fruit tree are paying their so called fair share. Tis true Thailand has an old moneyed class that has just about locked up most valuable assets and even blocked cheaper imports directly or via the VAT if their business is manufacturing the same item. All I can say is warning and good luck once they start down this road.

"The father and daughter talk"

A young woman was about to finish her first year of college. Like so many others her age, she considered herself to be very liberal, and among other liberal ideals, was very much in favor of higher taxes to support more government programs, in other words redistribution of wealth.

She was deeply ashamed that her father was a rather staunch conservative, a feeling she openly expressed. Based on the lectures that she had participated in, and the occasional chat with a professor, she felt that her father had for years harbored an evil, selfish desire to keep what he thought should be his.

One day she was challenging her father on his opposition to higher taxes on the rich and the need for more government programs.

The self-professed objectivity proclaimed by her professors had to be the truth and she indicated so to her father.

He responded by asking how she was doing in school.

Taken aback, she answered rather haughtily that she had a 4.0 GPA, and let him know that it was tough to maintain, insisting that she was

taking a very difficult course load and was constantly studying, which left her no time to go out and party like other people she knew. She didn't even have time for a boyfriend, and didn't really have many college friends because she spent all her time studying.

Her father listened and then asked, "How is your friend Audrey doing?"

She replied, "Audrey is barely getting by. All she takes are easy classes, she never studies and she barely has a 2.0 GPA. She is so popular on campus; college for her is a blast. She's always invited to all the parties and lots of times she doesn't even show up for classes because she's too hung over."

Her father asked his daughter, "Why don't you go to the Dean's office and ask him to deduct 1.0 off your GPA and give it to your friend who only has a 2.0. That way you will both have a 3.0 GPA and certainly that would be a fair and equal distribution of GPA."

The daughter, visibly shocked by her father's suggestion, angrily fired back, "That's a crazy idea, how would that be fair! I've worked really hard for my grades! I've invested a lot of time, and a lot of hard work! Audrey has done next to nothing toward her degree. She played while I worked my tail off!"

The father slowly smiled, winked and said gently, "Welcome to the conservative side of the fence."

If you ever wondered what side of the fence you sit on, this is a great test!

If a conservative doesn't like guns, he doesn't buy one. If a liberal doesn't like guns, he wants all guns outlawed.

If a conservative is a vegetarian, he doesn't eat meat. If a liberal is a vegetarian, he wants all meat products banned for everyone.

If a conservative is down-and-out, he thinks about how to better his situation. A liberal wonders who is going to take care of him..

If a conservative doesn't like a talk show host, he switches channels. Liberals demand that those they don't like be shut down.

If a conservative is a non-believer, he doesn't go to church. A liberal non-believer wants any mention of God and Jesus silenced.

If a conservative decides he needs health care, he goes about shopping for it, or may choose a job that provides it. A liberal demands that the rest of us pay for his.

Luckily for you, the current Thai Government is definitely not "liberal" and is conservative to the max. as are its sponsors.

I assume you will be preferring Trump over Clinton and Clinton over Sanders.

I hope in the time you have left you will have the opportunity to experience what it is like to be on the other side of the economic divide so you can gain more understanding of the lives of 95% of the world's populatuion

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Shifting ownership of assets to assets of equal value is not the same as redistribution of wealth. It is actually a preservation of wealth.

Wealth inequality remains.

If a tax were imposed directly on current holdings (ie., undeveloped real estate) whose cummulative value exceeds 50 million baht regardless of subsequent transfer and then the government redirects such tax revenues to low income people such as a financial safety net, supplemetal income, or free or reduced cost public services, that would be a redistribution of wealth.

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Shifting ownership of assets to assets of equal value is not the same as redistribution of wealth. It is actually a preservation of wealth.

Wealth inequality remains.

If a tax were imposed directly on current holdings (ie., undeveloped real estate) whose cummulative value exceeds 50 million baht regardless of subsequent transfer and then the government redirects such tax revenues to low income people such as a financial safety net, supplemetal income, or free or reduced cost public services, that would be a redistribution of wealth.

Not so much about wealth distribution, but rather on capital locked up in hoarding real estate. That's two vital economic resources being unproductive.

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