Compensation: Would You Mind If You Never Had to Pay Tax Again?
|December 19, 2013||Posted by Staff under Good Press|
This 2013 excerpt of MoneyWeek, Dec 11, is by Merryn Somerset Webb, and continues earlier British press coverage of the proposal.
We’ve written here several times before about how useful a land/location value tax (LVT) might be.
If you build a bypass around a village, the price of houses in the village goes up. And if the taxpayer has put up the cash for the bypass, why should the owners of this tiny group of houses reap a windfall of tax-free cash? Makes no sense really.
But what of the people who can now see and hear the bypass where before they lived in peace? Some of them will have ended up with a little compensation. Most will have had none. Yet they will have suffered one way and another, so why shouldn’t they be compensated via the tax system – paying less tax on their now devalued land than those inside the village in their newly desirable homes?
Imagine if a new wind farm were going up in clear sight of your hill-top cottage, or perhaps that fracking was about to ruin your sense of rural idyll. Would you complain so hard if your compensation came in the form of zero council tax for ever?
The current compensation system for those living around new infrastructure projects is geared to paying out as little as possible. That pretty much guarantees that people will oppose it, and do so for as long as possible.
In the Autumn Statement was a decision to “run a pilot project that will share some of the benefits of the development directly with the individual households adversely affected by it.”
There have been a good many hints since the last election that the coalition is unusually interested in the LVT. This is another one.
Ed. Notes: Bigger picture, all of us should be compensated for being excluded from everyone else’s private property on Earth, our common heritage, just as each of us should compensate everyone else for our excluding them. That means, we’d all pay Land Dues into the common kitty and get Rent Dividends back. Those who claim more desirable locations would pay more while all citizens would get back an equal amount. Compensation could go a long way to taking the sting out of nuisances such as above, plus people might not mind so much when they must move to make way for progress. And extra money in the pocket would undoubtedly help pass the land tax or land dues into law.