Land Value Taxation Campaign

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Land rent for public revenue

The dead loss of VAT

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Brexit is a golden opportunity to get rid of all the trade tariffs we have been saddled with by the EU - that is, to reduce taxes on sales of goods and services, by dropping not only existing ‘free trade agreements’, with their enforced tariffs, but while we are at it, VAT as well.

VAT is a trade tariff - just the UK’s intra-national version. The irrationality of government, elected by the people, is here without bounds when it comes to such a destructive tax. Persisting with VAT merely retains our own home-grown version of the poison of trade tariffs.


Fee trade area

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The Single Market is described as a free trade area. In reality, is very expensive. It means that if you want to trade with me, even if we are next-door neighbours, we can only do so legally over a 20% high tariff wall between us - Value Added Tax. In some EU countries, the internal tariff wall is even higher - 25% in Sweden. That is not much of a free trade area. Fee trade area, more like.

Green and Brown are neighbours. Green does gardening work for Brown at an agreed price of £200. Brown services Green's car for an agreed price of £200. There are three possibilities.

  1. They exchange their services and no money changes hands.
  2. They pay cash to each other.
  3. They bill each other and add 20% VAT.

If VAT is not a tariff barrier against legal trade, then what do you call it? What do you think they will do in practice? You could of course say the same about income tax. Why would Green pay Brown taxable wages when he could just pay cash under the table?

VAT and Income Tax are a pair of poisonous fruits.


The symbiosis of Marxism and Neoliberalism

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The current problems with social democratic parties world-wide stems ultimately from an ideological failure. Insofar as contemporary socialism has any ideology at all, it is Marxist. There is a fundamental flaw with Marx which is these days not widely known and understood. He conflates land and capital. They are separate entities.


Geography matters

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The importance of geography - review of a book by Tim Marshall, Prisoners of Geography. The separation of economics and geography as academic discplines is one of the reasons why economic problems seem so intractable. Geography goes a long way to explaining phenomena such as regional economic imbalance and the Brexit vote. This book sounds as if it is worth looking at.


The Grosvenor Estate

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The death of the Duke of Westminster has drawn attention to the fact that the estate is not liable for inheritance tax as it is vested in a trust. This has led to indignant comments and charges of tax avoidance.

The Grosvenor Estate is one of several owned by aristocratic families, which together encompass a large area of Central London. The pattern of land ownership in Central London has hardly changed since 1700.

Their managers of these estates have done a good job in preserving the attractive character of at least part of the capital, protecting it from rapacious developers and local authorities who between them have ruined the London skyline.

However, it is important to remember that this land would be almost worthless if it were not for the infrastructure paid for and maintained day and night at the expense of the taxpayer, without which London could not function. In principle, it does not matter who owns land as long as those owners pay their contribution towards the cost of the services which sustain their rental income stream - ie a land value tax close to the full market rental value. From this perspective, breaking up these estates would in itself solve nothing. The land value tax is in principle just a service charge.

In practice, land ownership brings political influence. Wise owners would use that influence to secure legislation which was for the greater good. If they do not, sooner or later there will be a price to be paid.


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