Wasn’t the favored car of the country estate class a Subaru Forrester?
Although that assumes that the engines didn’t grenade themselves.
I think a bigger problem than tax is where the money flows. For example (MMT fans close your ears) we use tax money to give to poor people to pay their rent, but that goes straight into the pocket of rich people directly and/or when they ultimately sell the property they’ve invested in. The ability to buy a house to let means you are taking poor people’s money, and the ability to do that means that house then becomes more valuable to other rich people, making it harder for those poor people to buy their own houses and get out of the trap they’re in.
When you think about it, that’s pretty **** up.
That also hold true from an MMT perspective.
Just think of tax and interest rates as two different ways of taking money out of the economy.
Low interest rates drive up house prices (bad for poorer people).
Low interest rates make acquiring more assets cheap (good for rich people). E.g. I definitely wouldn’t have a stocks and shares ISA if my mortgage wasn’t fixes at a pre-Truss rate! Alternatively I could have put that money into BTL or just outbidding someone on a house pushing the prices up either way.
Long term house prices are going to be limited by affordability, they can’t keep going up as a multiple of income, we’ve maxed out the sensible loan terms, and we’ve gone from 1 income per household to two. If rates stay in the 4-5% region and we build a few hundred thousand more of them to equalize supply and demand so there’s less pressure, then house prices will probably just stagnate because unless we build houses people don’t actually want then people will always spend as much as they can afford on the nicest house they can afford.
MMT doesn’t give you a free lunch, it just explains there are more ways to pay for it than just the HMRC current account.