We, the undersigned, petition the Prime Minister to Make rent of the principal house or the interest component of mortgage payment a charge deductible from income tax.
There is virtually no argument to defend that an individual A buying his house 300 000 should pay more tax than an individual B investing 300 000 houses in bond or stocks and using the dividend or the interest payment to pay the rent.
The fact that the system is fiscally to ownership as the effect that the price of house bought by upper band tax rate income are likely to be priced 40 % too high and the one of lower bond income are 20 % too high as interest or dividend will be taxed 40 % for the higher band. The comparison between rent encourage people to sell their stock and bond to buy their house up to a 40 % over price.
We should stop the vicious circle of high house price, high rent, and high mortgage payment by making rent charge and interest mortgage payment deductible of our taxable income.
This petition closed on Sunday 6 June 2010 without having attracted any support at all. The creator was left in a minority of one. Here’s your chance to comment on this petition.