Tax housing gains to fund society, urges former politician

A former Danish politician is calling for a tax on profits from property sales, arguing that rising home values are a result of societal progress, not just capitalism. Jon Stephensen, a former member of parliament, believes that while the market plays a role, the Danish society's development has significantly driven up prices in urban areas.

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It cannot be helped to say that it is the capitalists' fault.

Stephensen points to his own house, which has increased in value by 900 percent over 25 years, generating 30 million kroner in tax-free profit. He emphasizes that his argument is not about envy but about fairness, questioning why such significant, society-created gains benefit only the individual homeowner without contributing back to the community.

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It is not capitalism that has made his house rise like a rocket. But from there, I disagree completely.

He draws a parallel to the taxation of stock market gains, which are taxed at rates between 27 and 42 percent, while housing gains remain untaxed. Stephensen proposes a modest tax of five to ten percent on housing profits. He suggests this could help cool the overheated housing market and simultaneously generate funds for societal development, such as agricultural transitions, increased defense spending, or supporting an aging population. He also proposes establishing a fund, similar to Norway's oil fund, for future investments.

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We have become richer, most of us and the society, the welfare society has in itself created value.

Stephensen urges the new Danish government to address this issue, which he believes has reached a critical point requiring action. He hopes they will dare to confront the current system and implement changes that benefit society as a whole.

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It is a skewing of Danish society that is not healthy, and which is the biggest inequality-creating factor right now.