JAM FOR THE FEW!
I
can speak with the greatest confidence and on the highest authority to predict
that the Chancellor will not be cutting the rate of Land Value Taxation,
tomorrow.
Er, but we don’t have Land Value Taxation,
do we?
Well, we don’t have
THAT kind of Land Value Taxation.
What is THAT kind?
The kind that
landowners pay for doing nothing while their land gets more ‘valuable’ just because
of where it is, all the public investment in infrastructure and services, and
because there isn’t any more of it, etc.
Ah, so what kind are you talking
about?
The kind that
people who rent or buy somewhere to live have to pay landowners whose land has
become so valuable just because of where it is, etc, etc, but which they did nothing to
create.
But that’s the way ‘the market’
works, isn’t it? You have to pay the going rate, or someone else will rent or
buy it…
Depends on what you
mean by ‘work’. Flats and houses are a depreciating asset, so their price
should be going down all the time unless the property is being improved and
modernised. It’s only land prices that keep on going up, and you can’t do much
to make it more valuable than it already is…a piece of land is a piece of land.
So why should paying more and more for it be a good thing? It just means more
of what people earn, which is taxed, goes into the pockets of people who have
done nothing and mostly don’t get taxed at all.
But those people…some of them are
people who are just selling on their house to someone else. They are not bad people.
No, but they are speculators
just as much as the people who are doing it as a 'business' so to speak. In 2007,
the amount by which house prices went up…that was the last year before the crash…was
the equivalent of a deficit of nearly 4.5% of GDP…money just being sucked out
of people’s earnings being spent on interest to banks and building societies
(on money they created out of thin air) and inflated land prices, and not producing
anything worthwhile that would improve our quality of life.
Hmm, but nobody is being harmed,
are they?
Well, most homeowners
will probably end up having paid no taxes, as the untaxed value of
their homes will have increased by more than all the taxes they have paid over
the course of their working life.
So who does pay taxes to pay for
all our public services and infrastructure...and everything?
Good question! All
the people who don’t own their home…mostly the people on the lowest incomes, in the most precarious jobs, or
whose income from benefits is also now taxable….the people who still have to
pay for rising rents, despite cuts in benefits…who don’t have enough money for food,
heat, clothes, holidays, travel etc…you know, the kind of things that most normal
people can do.
So what’s all that got to do with
Land Value Taxation?
Haven’t you worked that
out, yet? With Land Value Taxation, there would be more than enough tax income
for all the services we need; no cuts to the NHS, libraries and all that kind
of thing. You could cut income tax and corporation tax, which seems to be a
pretty voluntary affair anyway, and still have enough, and you wouldn’t be
taxing the things that you want more of…more production, better incomes, a stronger
economy.
Sounds good to me.
It is…but turkeys
don’t vote for Christmas…so they say…did they ever hold a turkey referendum to
find out? We should let the voice of the turkeys be heard!
So no one is going to vote for anything so logical, even if our politicians had the intelligence to work this all out, and then the courage to do something about it. So all that income that could be extracted pretty painlessly from landowners is going to be squeezed out of the part of the population that can least afford it. And that’s why the Chancellor will not be cutting the rates of that kind of Land Value Taxation any time soon. You ought to read my blog on ‘Plunder’, btw. This is nothing new. Winston Churchill was banging on about it over a century ago.
So no one is going to vote for anything so logical, even if our politicians had the intelligence to work this all out, and then the courage to do something about it. So all that income that could be extracted pretty painlessly from landowners is going to be squeezed out of the part of the population that can least afford it. And that’s why the Chancellor will not be cutting the rates of that kind of Land Value Taxation any time soon. You ought to read my blog on ‘Plunder’, btw. This is nothing new. Winston Churchill was banging on about it over a century ago.
The
Winston Churchill?
Yes, the famous one…famously
rude to women, anyone really…switched political parties not once but twice…some
say for his own political advancement…not at all trusted or liked by fellow politicians…unpredictable…very smart at promoting himself in the media…bit of a celebrity politician…good at building walls...
You can
read more about the ideas in this ‘conversation’, and others, in a current series
of nine blogs being written by Fred Harrison, Professor Danny Dorling and myself
for a campaign in support of affordable housing, promoted by Taxpayers Against Poverty. You can
also view my presentation Taking back control, with some specific ideas on how to make housing more affordable right away, made to a joint meeting of the
All Party Parliamentary Group on Poverty and TAP early in November.