Good Press: 5 More Published Articles for Tax Sanity
|April 26, 2014||Posted by Staff under Good Press|
These five excerpts of endorsements of the public recovery of socially-generated location values are from: (1) Toronto Star, Mar 31 by Frank de Jong; (2) Huffington Post, Apr 20 by Joseph Finlay; (3) Demos, Apr 21, by Matt Bruenig; (4) Australian Property, Apr 23, by David Collyer; and (5) The Guardian, Apr 23, by Jonathan Portes.
Frank de Jong’s Big Idea
Frank de Jong has a great idea about housing: Taxing land alone without buildings will transform Toronto by encouraging landowners to put vacant and underused land to more productive use.
How to Tax the Rich – in 10 Easy Steps
5. More taxes on wealth, less on income. We should refocus our taxation away from the taxation of economically useful activity and onto the holding of wealth, discouraging the hoarding of valuable cash, land or possessions. This would be much more sensible for the overall economy whilst raising as much revenue or more.
6. Tax land ownership. The greatest source of wealth is the ownership of land and yet it is only lightly taxed in the UK. Better would be a land value tax, an annual tax on the underlying value of land owned (rather than the value of buildings that occupy it). This is a policy that has been recommended by economists from across the political spectrum, and could wholly replace current taxes like council tax and stamp duty. Done right, it would mean lower bills or equal bills for the vast majority of the population, and substantially increased taxation on the top 10%.
Race and the Land Value Tax
LVT could capture all of the rents that flow from the land to the owner, but the owner could still make money by doing productive things on the land (like providing housing services or running a business).
In our discourse about “housing wealth,” we often conflate land value and building value. Home values (i.e. the value of the physical structure) should hardly ever increase in price. When we are talking about “housing wealth” increasing, what we are talking about is land value increasing.
LVT could blow up this source of racial wealth disparity. The dollar value of rents would never be accessible to the owner of the land. It would not cause racial wealth divergence.
REIWA: replace stamp duty with land tax
Yesterday REIWA president David Airey issued a call in the West Australian newspaper for the WA government to abandon Stamp Duty and fund this by removing the many wheezes from the tattered State Land Tax.
To Make Housing Affordable Requires More Than Tinkering Around the Edges
Danny Dorling argues for a land tax and an increased, much more progressive council tax, to encourage housing to be used more equitably and efficiently.
Building more houses would reduce the price of existing ones, and hence in itself would make the UK a less unequal society. So would higher taxes on land and property. And both would make it less attractive to leave properties empty as an investment rather than using them productively by letting them out.
Ed. Notes: If you’re going to tax, do tax the values that society generates, rather than the values individuals generate. But note: you don’t need to levy a tax, you could institute dues, and you don’t have to hand over all the rents to politicians and bureaucrats, you could disburse the revenue to residents as dividends. That should please both policy wonks and real people.