tag:blogger.com,1999:blog-1141932539860553199.post7529982379641702672..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: Town planning: ParksMark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-1141932539860553199.post-1372193821719771792013-01-06T08:29:05.878+00:002013-01-06T08:29:05.878+00:00Unk,
1. Yes of course the Citizen's Dividend...Unk, <br /><br />1. Yes of course the Citizen's Dividend is per person, I was illustrating the point. I could have said "A household with two adults receiving £4,000 Citizen's Dividend each".<br /><br />2. Income tax is "progressive" in the sense that you pay 0% on the first bit, 20% on the next bit, then 40% and then 50%. The highest income tax rate you can theoretically have is 100%.<br /><br />3. The ideal LVT rate is close to 100% ANYWAY. You cannot have a rate that is higher than that. So the LVT rate itself is not "progressive", it is the CD which makes it "progressive".<br /><br />So typical households pays effective rate of 20% LVT and other household occupying lots of land pays effective rate of 92% (and getting close to 100%).<br /><br />This is a lot more progressive than income tax currently is - bearing in mind that income tax is inherently less "progressive" than LVT in the first place.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-11178195527907680932013-01-05T21:28:08.405+00:002013-01-05T21:28:08.405+00:00Mark,
I am not sure I understand. I think the cit...Mark,<br /><br />I am not sure I understand. I think the citizens dividend needs to be per adult.<br /><br />So assuming one person owns land of value £10000 in your example, they pay net £2000.<br /><br />If they buy additional land worth £10000, then they pay £10000 more. The marginal rate on the extra land of 100%, and the extra rate on the extra land isn't increasing as it does with income tax.<br /><br />So it looks to me as if it isn't progressive at all.leicestersqhttps://www.blogger.com/profile/08950027050782652257noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-60830592947816322852013-01-05T12:11:57.947+00:002013-01-05T12:11:57.947+00:00Unk, that is the beauty of returning at least half...Unk, that is the beauty of returning at least half of total LVT receipts as Citizen's Dividend (to replace the welfare/pensions system and personal allowances).<br /><br />Let's say the CD is average £8,000 per household and the LVT is 100% of site premium rental value.<br /><br />One household occupies land with rental value £10,000, pays net £2,000 (an effective tax rate of 20%.<br /><br />Another household occupies land with rental value £20,000, pays net £12,000 (an effective tax rate of 60%).<br /><br />Another household occupies land with a rental value of £100,000, pays net £92,000 (an effective tax rate of 92%).<br /><br />... and so on. That is inherently "progressive" without the need to have different rates of LVT (which would create all sorts of loopholes by people with lots of land splitting it up into separate holdings via nominees and so on). Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-330818567254794872013-01-05T12:02:26.269+00:002013-01-05T12:02:26.269+00:00The important thing about a land value tax, is tha...The important thing about a land value tax, is that it should be progressive. The more land value by value you own, the higher the tax rate should be. If you own a low value amount of land, a tax rate of zero may be appropriate. This is to counteract the profit gained due to monopoly ownership of land.leicestersqhttps://www.blogger.com/profile/08950027050782652257noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-39614958809920672512012-12-26T22:03:47.056+00:002012-12-26T22:03:47.056+00:00BJ, common sense says that local councils (who are...BJ, common sense says that local councils (who are, let's assume also in charge of town planning) get to keep a certain percentage of LVT arising in their area, the rest gets chucked into the national pot and dished out again per capita (like Business Improvement Districts and Business Rates).<br /><br />Even if they only keep ten per cent, that does not matter. That is still incentive enough, and a good planning decision will still increase local revenues.<br /><br />R, one day I will have to look into that whole Sim City thing.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-4355520483964806052012-12-26T21:51:15.665+00:002012-12-26T21:51:15.665+00:00This reminds me of playing Sim City when I was you...This reminds me of playing Sim City when I was younger. I'd always build doughnut shaped blocks with a park in the middle.<br /><br />Sim City, like Monopoly, is therefore a good teaching tool for city planning and taxation.Rosshttps://www.blogger.com/profile/02263275229285861236noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-6965435382586808622012-12-26T19:21:39.226+00:002012-12-26T19:21:39.226+00:00LVT would only concentrate the minds of local plan...LVT would only concentrate the minds of local planners if there was a formula for divvying LVT up nationally/locally. <br /><br />Perhaps, under LVT, Councils should give national Government grants, not the other way round? Just a thought..... benjhttps://www.blogger.com/profile/11544297406005346095noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-20127632369706072232012-12-26T13:25:05.617+00:002012-12-26T13:25:05.617+00:00JH: "So what is the optimum level?"
Lik...JH: <i>"So what is the optimum level?"</i><br /><br />Like I said, I do not know, I'm not sure there is a precise optimum, but it must be somewhere in the region of five to ten per cent. Then there's stuff like town squares, which are handy for markets, brass bands, travelling fairs, circuses, demonstrations, jubilee parties and so on. Or pathways along canals and rivers.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-82761387609843424192012-12-26T13:16:46.652+00:002012-12-26T13:16:46.652+00:00So what is the optimum level?So what is the optimum level?James Highamhttps://www.blogger.com/profile/14525082702330365464noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-82236295185303891042012-12-26T12:36:00.146+00:002012-12-26T12:36:00.146+00:00B, good counter-example.
If they are really evil...B, good counter-example. <br /><br />If they are really evil, they sell off the houses and people pay extra on the assumption that the park will be preserved, then they build on the park as well. At least if you are a tenant or you bought the house for cheap subject to LVT you get a lower rent or LVT bill in future.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-78682682456653251602012-12-26T12:13:52.773+00:002012-12-26T12:13:52.773+00:00I used to live on the Shaftesbury Estate in Batter...I used to live on the Shaftesbury Estate in Battersea, which was built in the 1870s, mostly for rent, with a playing-field sized green space in the middle. A few years after the estate was finished, the silly sods who owned the houses built all over it.Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.com