Australia’s MacroBusiness: Shift Taxes to Site Value
|March 7, 2014||Posted by Staff under Good Press|
This 2014 excerpt of MacroBusiness, Feb 27, is by Catherine Cashmore
The correct way to fund local schools would be via broad based and effectively administered land value taxation, which in its purest form – as advocated by the Classical Economist, Henry George – would result in a single tax on the unimproved value of land to replace all other taxes, which hamper productivity – significantly income tax.
The Henry Tax Review commissioned by the Government under Kevin Rudd in 2008 concluded that “economic growth would be higher if governments raised more revenue from land and less revenue from other tax bases” proposing that stamp duty (which is an inconsistent and inequitable source of revenue) be replaced by a broad based land tax, levied on a per-square-metre and per land holding basis, rather than retaining present land tax arrangements.
Therefore – when times comes that the ‘chatter’ around affordability, finally evolves into ‘real’ action – a broad based LVT should form an important part of both the debate, and solution.
Ed. Notes: The Australian press is hot on the heels of the British press in the race to raise public awareness of a tax that works right for everyone.