UK’s Prominent Institute for Fiscal Studies: Levy Location Value
|February 11, 2014||Posted by Staff under Good Press|
This 2014 excerpt of Liberal Democrat Voice, Feb 10, is by Nick Thornsby.
Last week, the highly-respected Institute for Fiscal Studies in Great Britain produced its annual “Green Budget”.
On the living wage, the IFS have two reservations:
…the policy also has two key problems. First, it does not seem particularly well targeted at addressing the ultimate causes of low pay – low productivity and/or exploitation by employers with substantial labour market power. Second, it may distort the behaviour of employers in ways that reduce employment and economic output, and reduce rather than increase exchequer revenue.
LVT: an idea whose time has come?
Another chapter is devoted to the issue of business rates and ideas for their possible replacement. At the very least, the IFS would like the government to look seriously at whether a land value tax should be considered:
We cannot say conclusively that the administrative hurdles to replacing business rates with an LVT could be overcome at reasonable cost. But this is such a powerful idea, and one that has been so comprehensively ignored by governments, that the case for a thorough official effort to design a workable system seems to us to be overwhelming. In particular, significant adjustment costs would be merited if the inefficient and iniquitous system of business rates could be swept away entirely and replaced by an LVT.
Ed. Notes: Why can political groups in the UK discuss the idea of using land value as the tax base but not in the US? Such articles appear frequently in GB, and in major media, and as a portion of the size media, far more frequently than in the US. Is it harder for bigger societies to discuss unfamiliar ideas? Do so many more voices and POVs create too much confusion? If so, probably a smaller nation will lead us.