Land Tax is often overlooked

8 Apr

http://www.smh.com.au/comment/land-tax-often-overlooked-in-the-tax-debate-20150407-1mfro2.html

Jessica Irvine says:

“Sometimes, the answer is right in front of your face. Sometimes, it’s just below your feet.

As we embark, as a nation, on a sensible and measured debate about tax reform, land tax should be a major part of the discussion.

Land tax is one of the most efficient taxes for precisely the reason it is unpopular: it is hard to dodge.

Of the roughly four things governments can tax – companies, individuals, consumption and land – economists agree that land is by far the most efficient source for taxation.  .   .   .   .   ”

Please go to the above link to read on.

It is important that when it comes to land tax, only the unimproved value should be taxed, not the home!

4 Responses to “Land Tax is often overlooked”

  1. stuartbramhall April 9, 2015 at 9:04 am #

    I’m a big fan of land value tax – but I guess you already know this.

    • auntyuta April 9, 2015 at 9:56 am #

      What do you think, Stuart, it may take still quite some time before any of the ideas of Henry George can be implemented. I’d be happy if the politicians just started the debate on land tax. Eventually it should become a single tax, right? Whoever owns some land is probable out to resist a tax on land like people resisted it in the past despite the popularity of Henry George.

      • stuartbramhall April 9, 2015 at 10:01 am #

        We have a New Economics Party in New Zealand that advocates to simultaneously ban private banks from creating money (by restoring that right to government) and an LVT. They want the LVT to ensure the oligarchs don’t start hoarding all the newly created money: http://neweconomics.net.nz/index.php/tag/tandvaluetax/.

        Land value tax has been extremely popular in New Zealand. Until the 1980s, most local councils calculated rates based on a land value tax.

        New Plymouth still has an LVT – they also have really high fixed charges (which we’re campaigning to get rid of) that comprise 2/3 of the average rate bill.

      • auntyuta April 9, 2015 at 10:25 am #

        Thank you very much for your reply, Stuart.
        I just received a letter that Ron Johnson wrote in response to what Jessica Irvine wrote:

        The Revenue That is Not a Tax

        Congratulations to Jessica Irvine for another well-reasoned article on the largely overlooked merits of Land Value Taxation (“Land Tax Often Overlooked in the Tax Debate”, April 7). It is worth pointing out, as did the late Hon. Clyde Cameron back in 1989, that in fact government collection of the rent of land is not truly a tax. Land values that arise due to the presence, work and co-operation of the community as a whole are really “community wages” and it is only just that they be returned to the community. The more government spends on our schools, hospitals, railways, roads and other community services, the more land values increase and therefore even greater public revenue becomes available for infrastructure development. Here is a beautifully self-sustaining source for public revenue.

        Collecting land values for public revenue, in lieu of all current taxes is the fairest possible system. This idea conforms with the inalienable right of all people to use and enjoy land, on equal terms. After all, our right to use land is just as vital as our rights to breathe air and drink water. Perhaps we would make more progress if our current “tax debate” began with a morality debate.

        Yours sincerely

        Ronald E. Johnson
        Committee Member
        Association for Good Government

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