Land Value Taxation Campaign

  • Increase font size
  • Default font size
  • Decrease font size
Home Current Affairs

Current Affairs Comment

We are opposed to wealth taxes

E-mail Print PDF



Thomas Picketty, in his new book "Capital in the 21st century", has stimulated public discussion on the need for an international wealth tax to remedy growing inequality. He could not be more mistaken. Although so-called wealth taxes are in operation abroad, the proposal is unworkable since it fails at the first hurdle - that of definition. What is wealth? Does it include pictures on the wall, jewellery in bedside tables or forgotten treasures in the loft? How does one value, for example, a racehorse or a painting, whose provenance may be in question - the Rembrandt that turns out to be by one of his pupils, or vice versa? And if racehorses are exempt from the wealth tax because valuation is considered too difficult, then it does not take too much imagination to predict that millionaires will invest in lots of racehorses in order to enjoy the exemption.

For the record, LVT is not a wealth tax. It is a tax on a revenue stream, its rental value.

 

Vested interests and economics theory

E-mail Print PDF
The views expressed on this web site are almost never voiced by mainstream economists, politicians and journalists, even those who purport to be radical. Were they to do so they would be quickly silenced. One result is that there is no effective challenge to the Neoliberal project, now in full flood in Britain and the US. This lack of effectiveness manifests both as a failure to argue against neoliberalism from a philosophical and theoretical perspective, and a failure to construct alternative policies.

We in the LVT movement have been part of the problem too. It has taken most of us a long time to understand the true role of the contemporary banking system and its relationship to land. Banking has evolved into a machine for the capture of land rent, under the guise of interest payments. The banks are in reality landowners for the duration of the loans they make. This sleight of hand has deceived a lot of us.

Attention is thereby removed from the source of the problem. Thus, the present economic crisis is described as a banking crisis, but what the banks have really been doing is acting as land speculators. Most of the comments and all of the proposals currently in circulation consequently fail to address the underlying state of affairs.

This speech, "Veblen's Institutionalist Elaboration of Rent Theory", by Michael Hudson, digs down into the issue and is worth studying. It was given at the Veblen, Capitalism and Possibilities for a Rational Economic Order Conference, Istanbul, Turkey, June 6th, 2012.
 

LVT too much for farmers?

E-mail Print PDF
Why do opponents of LVT wheel out the argument that farmers could not afford to pay LVT? This is taken from the latest statistics from DEFRA.

"General cropping and cereal farms had large increases in rent in 2010 and the prices now stand at £249 and £176 per hectare respectively. This may be due to the improvement in the profitability of arable farming." The main findings were
  • 2010 rent prices for Full Agricultural Tenancy (FAT) agreements have risen across all regions.
  • Cattle and sheep farms in less favoured areas (LFA) showed the largest FAT proportional increase (21%) from £52 in 2009 to £62 in 2010.
  • Average rent for dairy farms increased by 16% between 2009 and 2010 and now stands at £180 per hectare.
The idea that farmers could not pay an LVT is absurd.
 

Interview from Occupy London

E-mail Print PDF

Robin Smith, interviewed from Occupy London, gives a complete explanation of what is wrong with the economy.
 

Compass gives no direction

E-mail Print PDF
If you were to ask us what we would do in the present state of the economy, our reply would be that we would not have got into this mess in the first place. In the early 1990s, when the Labour Party was developing its policies, we urged its policymakers to implement the system of land value taxation which the Campaign was set up to promote.

Let us suppose that Labour had pursued our policies with vigour when it was elected in 1997. By around 2005, the government's finances would have been in a healthy state, debt would have been falling, and the welfare bill would have been shrinking as unemployment and benefits-dependency dwindled to the levels last experienced in the 1950s. The banking crisis would have largely passed Britain by, since there would have been no land price bubble-and-bust. Any impact from abroad, such as a drop in demand for exports, could have been taken care of by catching up on the country's backlog of repairs to its infrastructure, and by bringing forward new projects. Of course, those in the banking, insurance, and financial services businesses who had wanted to continue in the old ways, could still have invested and dealt in foreign government and corporate bonds and in dodgy derivatives. They might have caught a cold in the process, but the consequences would have been for them to bear.
Read more...
 

What are the Liberal Democrats proposing?

E-mail Print PDF
The LibDems' proposal for some sort of land value tax has attracted a little bit of coverage recently, but it is not clear exactly what is proposed. The root of the trouble seems to be that Liberal Democrats (and politicians generally) and press reporters and commentators have only a shallow understanding of LVT. It is not helpful that not all LVT supporters seem to have real depth of understanding either. The resultant lack of confidence results in hesitancy, insecurity, and the unwillingness to fight hard enough (or at all) against doctrinal perversions, compromises, concessions, and exemptions.
Read more...
 

The only solution to the Greek financial crisis

E-mail Print PDF
Perhaps the most constructive comment on the solution to the Greek debt crisis has come from Andrus Ansip, prime minister of Estonia. He is reported to have said, "If I may give my advice to Greece, it is that you have to cut public expenditure. You have to make structural reforms. And you have to create a really efficient taxation system." Whatever can he mean by a really efficient tax system?
Read more...
 

Putting a price on the environment

E-mail Print PDF
Wealden Meanders
A row has erupted over a report that attempted to put a value on the natural environment. The counter-argument is that the natural environment is priceless and that it is somehow sacrilegious to put a price on it. There is an important sense in which this is true, but in our present state of society, surely it is better to put a value on nature than to assume, as at present, that it is worthless?
Read more...
 


Page 3 of 19

Have your say?

Do you have something to say?
Would you like to contribute to this web site?

Read more...

We use cookies to improve our website and your experience when using it. Cookies used for the essential operation of the site have already been set. To find out more about the cookies we use and how to delete them, see our Privacy Policy.

I accept cookies from this site

EU Cookie Directive Plugin Information