8. (2012 November) Likeable Link: More on LVT in the UK

A land value tax should be at the heart of London’s economic recovery
Fairer, smarter taxes are needed for London to recover from the double-dip recession
By Jenny Jones AM, leader of the Green Party on the London Assembly

http://www.leftfootforward.org/2012/10/a-land-value-tax-should-be-at-the-heart-of-londons-economic-recovery/

1 thought on “8. (2012 November) Likeable Link: More on LVT in the UK

  1. In common with many potential LVt supporters, there is much confusion about it within the various comments on this green website. I think that Georgists need to agree on how our information is expressed in a standard way. In my knowledge there are 14 aspects of LVT all of which are relevant to a would-be Georgist and all of which should be explained to him/her. here they are: 14 ASPECTS of LAND-VALUE TAXATION affecting Government, Land Owners, Community and Ethics

    3 aspects for GOVERNMENT
    1. LVT, adds to the national income. .
    2. The cost of collecting the LVT is much smaller than for income tax and other production-related taxes.
    3. With LVT, the national economy stabilizes and no longer experiences the 18 year housing boom and bust cycle.

    6 aspects affecting LAND OWNERS
    4. LVT is progressive, the owners of the most potentially productive sites pay the most tax.
    5. The land owner pays his LVT regardless of how the land is used. When the land is leased to tenants most or all of the resulting ground-rent is the tax.
    6. LVT stops the speculation in land prices because any withholding of land from proper use is too costly.
    7. The introduction of LVT reduces the sales price of sites even though their value (or potential usefullness) may continue to grow.
    8. With LVT, land owners are unable to pass the tax on to their tenant renters, due to the competition for land use.
    9. With the introduction of LVT, land prices will drop. Speculators in land values will tend to foreclose on their mortgages and to withdraw their money for reinvestment. LVT should be introduced gradually. It allows investors sufficient time to transfer money to company-shares where their greater use will meet the increased demand for produce (see below).

    3 aspects regarding our COMMUNITY
    10. With LVT, there is an incentive to use land for production, rather than it laying idle or being partly used.
    11. With LVT, greater working opportunities exist due to cheaper land and a greater number of available sites. Consumer goods become cheaper because entrepreneurs have less difficulty in starting-up and running their businesses. Demand grows, unemployment decreases
    12. As LVT is introduced, investment money is withdrawn from land and placed in durable capital goods.

    2 aspects about ETHICS
    13. The collection of taxes directly from productive effort and commerce is socially unjust. LVT replaces this form of extortion by gathering the surplus rental income which comes without exertion. Consequently LVT is a natural system of money-gathering.
    14. Bribery and corruption cease with LVT. Before, this was due to the leaking of news of municipal plans for housing development.

    Would sombody like to add to this list?

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