Spotted by Derek at the IEA blog:
Relaxing planning restrictions would lead to a rebalancing of land designations towards their most profitable use, namely residential housing and business. This would lead to a fall in house and business property prices as supply increased, and windfall gains to land owners.
A concurrent LVT would capture some of those gains. As the tax base is observable and fixed, neither avoidance nor evasion is possible, making collection cheaper.
Substituted for other distortionary and inequitable taxes such as council tax and business rates, Land Value Tax could also increase efficiency. Paired with an overhaul of the antiquated system of land-use planning, it would boost growth and ease budgetary woes.
Tuesday, 4 September 2012
Rabid right-wing free-market think-tank recommends, er...
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5 comments:
Good summary of all KLNs in one sentence down at the comments.
Kj, I think I missed off the "army of snoopers".
But added dead WW2 soldiers, that was uncalled for :)
Interesting suggestion of a possible side-effect by Henry Law: your enemies applying for planning permission on a plot of land you own so as to push up your LVT bill. A sort of reverse NIMBYism. (YDIYBY? - Yes, dammit, in your back yard) Mind you, they'd really have to hate you to go through all that hassle for no gain to themselves. Mind you, there's certain politicians I could think of.....
Kj, I'm not making this up. The rallying cry of the Home-Owner-Ists is always "We didn't win World War 2 just so that they can concrete over England's green and pleasant land, and yes, we've made capital gains on our houses but that is our reward for building up the country after the war."
B, that argument is patent bollocks as I will explain shortly.
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