Shepheard-Walwyn

Search Results for: land and taxation

Land and Taxation

Economists know that the optimum conditions for private enterprise are achieved when taxes on the earned incomes of labour and capital are reduced to zero but, because neoclassical economic theory insists on treating land as capital, they dismiss the obvious alternative to taxing labour and capital – the unearned income from land.

ISBN 9780856831621 | Hardback Price: £29.95

ISBN 9780856831539 | Paperback Price: £14.95

Buy: Land and Taxation

Read More

Understanding Land-value Taxation

Over the last year or so there have been a number of articles broaching the subject of land-value taxation in the national press. The Economist (9th August) even suggested ‘The time may be right for land-value taxes’, but
there is also much misunderstanding about that a land-value tax (LVT) is.

In the first place it is not a tax. A tax was defined by Hugh Dalton, later Chancellor of the Exchequer, in his Principles of Public Finance as “a compulsory contribution imposed by a public authority, irrespective of the amount of service rendered in return”. An example will illustrate: the Jubilee Line extension to the London Underground system cost the taxpayer £3.5 billion. Millions of taxpayers who contributed to its cost will never use it. Those who use it for their daily commute or to go shopping pay for its use through their fares, but the big beneficiaries are the land owners along the route. They will have contributed to the cost as all other taxpayers, but the huge uplift in value of their land within a 100 metre radius of the 11 stations along the line was estimated to have been £13.5 billion. Properties beyond the 100 metre radius would also have benefited, but progressively less the further they were from the stations. The cost was born by all taxpayers but the ‘service rendered’ was not reaped in proportion to ‘contribution’. This is the nature of a tax.

With a Land-Value Tax (it is more accurate to regard it as an annual ground rent) there would be an equivalence between ‘contribution’ and ‘service rendered’ – the greater the services received, the higher the
contribution. The ground rent is a market estimation of the value of the services rendered. For example, the existence of a good school in a neighbourhood will increase property prices in exactly the same way as proximity to a station. It is not an arbitrary amount decided by government. LVT is therefore unlike a tax.

LVT differs from taxes in another respect. It does not distort economic activity. Some taxes, the so-called ‘sin taxes’ on tobacco, spirits and petrol, are introduced with the deliberate intent of discouraging certain behaviour by making it more expensive, but all taxes have this negative effect. They reduce economic activity. For example Stamp Duty discourages people from downsizing and affects adversely labour mobility. VAT makes goods 20% more expensive, thus reducing sales and affecting the viability of small businesses.

Read More

A History of Land-Value Taxation in New Zealand

New Zealand holds a rather special status in that it was notably the first country to introduce a system of land-value taxation for raising revenue. It was adopted in 1849, some 30 years before Henry George published Progress and Poverty, and finally abandoned in the 1980s.

Read More

Land Reform through Taxation in South Africa

Further Reading: Our Land, Our Rent, Our Jobs by Stephen Meintjes and Michael Jacques “How do 52 million South Africans share equitably in their 122 million hectares, especially when those hectares vary so enormously in value?”...

Read More

Why people fail to understand Land Value Taxation

To those who know and love Land Value Tax (LVT) the case for it seems self-explanatory, compelling and unanswerable. Yet strangely it all too often turns out to be a very hard sell. Present economic theory rests on false...

Read More

Why Clegg and Cable Favour Land-Value Taxation

Further Reading: The People’s Budget by Geoffrey Lee Re-Solving the Economic Puzzle by Walter Rybeck Standing for Justice by John Stewart Prime Minister by John Stewart Recently The Sunday Times reported that the ‘Lib Dems...

Read More

Action for Land Taxation and Economic Reform

Further Reading: Land-Value Taxation by Kenneth C. Wenzer Land and Taxation by Nicolaus Tideman The Liberal Democrats’ Action for Land Taxation and Economic Reform (ALTER) policy has been formulated with a view to its being part...

Read More

Henry George and Land Value Taxation Video

In this YouTube clip, Joshua Vincent, executive director of the Henry George Foundation of America, introduces himself, his organisation, and his mission, and asks why, in the richest country in the world, does poverty exist?...

Read More

Land Value Taxation

This collection of essays by a distinguished interdisciplinary group of scholars examines various aspects of Henry George’s argument and considers how relevant they might be to current concerns. It includes four previously unpublished essays by the 1996 Nobel laureate, William Vickrey.

ISBN 9780856831829 | Price: £14.95

Buy: Land Value Taxation

Read More

The End of Taxation

Further Reading: Public Revenue Without Taxation by Ronald Burgess Land-Value Taxation by Kenneth C. Wenzer By Dr Peter Bowman The market mechanism provides the most efficient way of allocating the resources of an economy. Yet...

Read More

Archives