A solution for London in 4 points:
1. Tax the land. Apply a primary residence exception. If it’s your only home, then no extra taxes apply. Assume foreign investors are not using their home as a primary residence.
2. Use the land tax revenue to reduce income and business taxes. Land tax should not be another revenue stream – it should be used solely to unburden workers and businesses. Too many entrepreneurs are lost due to lack of funds and time.
3. Pilot the policy in certain wealthy parts of London to identify and address any unintended consequences. Then, if proven successful, roll out to other parts of the city.
4. Redirect funds away from transport into London (e.g., High Speed Rail) towards transportation and infrastructure within local areas outside London. Focus on coastal towns. This would create jobs, amenities, local attractions in those parts of the country. It would also give people a chance to stay close to their families and communities without missing out on career and social opportunities.