Land Value Taxation Campaign

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Land rent for public revenue

Freeports - great idea or scam?

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Some thoughts on the proposed Freeports.

 

A useful suggestion in the right direction

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FAIRER SHARE is a pressure group campaigning for a reform of UK property taxes, with Stamp Duty and Council Tax being replaced by a national property tax, with the amount payable being proportional to its value, and some other worthwhile changes to the existing system. You can read all about it on their web site. It is a welcome move in the right direction. It is not LVT, but take property taxation in the right direction. However, I think they would get more support if the proposal was for assessments based on rental values. Seilling prices are grotesquely inflated by low interest rates and lax lending policies, whereas rents have roughly kept in line with wage levels. A proposal based on rental values would draw the teeth from a lot of the opposition.

   

The dead loss of VAT

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With the UK soon to be out of the EU, the country now has a golden opportunity to get rid of a regressive and troublesome tax. It would be difficult to conceive of any tax more damaging than VAT, because it applies precisely at the point where supply meets demand. VAT is exactly, precisely, wrong. Whatever is taxed results in less of the thing taxed. Taxes on gambling, tobacco and alcohol lead to a less betting, smoking and drinking; that is their aim and purpose. A tax on the addition of value will lead to the addition of less value. Since labour adds value, a tax on added value is the perfect tool to create unemployment by reducing demand. It is the exact opposite of what Keynesian theory would recommend, which is the artifical stimulation of demand due to a chronic shortage of demand in the economy.

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Musings on inflation

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Inflation is back in the news. These thoughts were sent to me by Robin Smith, a long-term supporter, though a critical one.

  • Inflation, through new money, is the best way for politicians to redistribute wealth In reduced purchasing power; it acts as a stealth tax, unjustly taking from the producer who saves and in hands out to the non producer who spend.
  • As the distribution of wealth is already so poor, there are fewer wealthier votes to lose and millions of poorer votes to buy.
  • The poorer recipients of the unjust taxation are a much bigger constituency. So it is perfect political expedience
  • Given the wealth is pre-distributed to the poorer constituents, is there a catch? Yes, of course! The deficit spending always ends up in land values through higher rents.
  • The poorer tenants can now afford to pay more, so the real-estate owner merely raises the rent.
  • In the end, the poorer are actually the losers And the real-estate owners the winners
  • Do the politicians look this far, when they get elected by an overwhelming majority for their unwise policy. Do they care?
 


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