XN000022-1978-06-07 — Page 17

WEDNESDAY, JUNE 7, 1978

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+IN ANY CASE EVEN IF IT WERE PRACTICABLE TO DEVISE A WAY OF USING STAMP DUTY TO CONTROL SPECULATION, I WOULD BE VERY DOUBTFUL ABOUT WIDENING THE AMBIT OF THE STAMP ORDINANCE IN THIS WAY TO MAKE

IT A REGULATORY INSTRUMENT, HE SAID.

MR. JORDAN FURTHER POINTED OUT THAT TO DISCOURAGE BY FISCAL MEANS THE SPECULATION THAT IS FELT TO BE RESPONSIBLE FOR THE

INCREASES IN PRICES EITHER OF SALE AND PURCHASE AGREEMENTS OR OF ACTUAL PROPERTY, IT WOULD BE MORE APPROPRIATE TO ATTACK THE PROFIT AR IS ING FROM IT THAN TO INCREASE THE TAX ON THE TOTAL VALUE OF THE TRANSACTIONS.

+

HE SAID THE FORM OF FISCAL CONTROL MEASURE. THAT WOULD BE REQUIRED, IN PRINCIPLE, WOULD BE A DIRECT TAX ON SPECULATIVE PROFITS FROM PROPERTY A FORM OF CAPITAL GAINS TAX..

HOWEVER. MR. JORDAN POINTED OUT THAT UNLESS THE NEW TAX WAS FRAMED TO COVER ALL SPECULATIVE GAINS, IT WOULD BREACH ONE OF THE FUNDAMENTAL REQUIREMENTS OF OUR TAX SYSTEM THAT THE TAX SYSTEM IS AS NEUTRAL AS POSSIBLE AS REGARDS THE INTERNAL COST/PRICE STRUCTURE AND INVESTMENT DECISIONS+.

+THE INTRODUCTION OF A CAPITAL GAINS TAX AIMED SPEC IF ICALLY AGAINST PROPERTY DEALINGS WOULD VIOLATE THIS REQUIREMENT ̧+ MR. JORDAN SAID.

+ I WOULD HESITATE TO PROPOSE THE INTRODUCTION OF A BILL TO MAKE SUCH A FUNDAMENTAL CHANGE IN CUR TAX SYSTEM, HE ADDED.

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