It’s not in the interests of the owners of society.
If we taxed land properly, we'd have billions of extra dollars to fund big tax cuts elsewhere. So why don't we do it?
Submitted 7 months ago by Longmactoppedup@aussie.zone to australianpolitics@aussie.zone
Comments
some_guy@lemmy.sdf.org 7 months ago
autotldr@lemmings.world [bot] 7 months ago
This is the best summary I could come up with:
Its members draw on insights from economists such as Adam Smith, John Stuart Mill, and most significantly Henry George, to explain how policymakers could slash taxes on labour and businesses.
Last month, former treasury secretary Ken Henry warned Australia’s tax system had deteriorated so much in the last couple of decades that he was worried about our “social compact” holding together.
To explain what they mean, they say Australia’s states and territories could raise an extra $27 billion in tax revenue each year, without reducing investment or economic growth, if they were smarter about land taxation.
They estimate the additional $27 billion that would be raised from best-in-class land taxation and value capture could fund a halving of welfare taper rates with no reduction in maximum payments for recipients.
They say the ACT prices rezoning via its Lease Variation Charge (LVC), which captures 75 per cent of the windfall gains landowners would otherwise receive from permission to redevelop at higher density.
State governments have access to the land base for taxation, they say, but they underuse it and rely heavily on Commonwealth grants funded by less efficient taxes on work and investment instead.
The original article contains 1,728 words, the summary contains 191 words. Saved 89%. I’m a bot and I’m open source!
ajsadauskas@aus.social 7 months ago
@Longmactoppedup What you're looking at here is the economic ideas of a late-19th century American economist named Henry George: https://en.wikipedia.org/wiki/Henry_George
At its furthest extreme, the argument is that land and licences to exploit finite natural resources (land, as well as potentially including minerals and carbon emissions) should be taxed heavily.
Meanwhile, *all* other taxes on productive wealth generation — income tax, company tax, GST, etc., should be completely abolished.
Advocates generally combine this with a universal basic income.
https://en.wikipedia.org/wiki/Georgism
The logic is that taxing finite natural resources will cause them to be used more efficiently, and the benefits distributed widely throughout society.
Meanwhile, activity that generates wealth should be encouraged, and that means it should go untaxed.
maegul@lemmy.ml 7 months ago
The kind of post you read the comments for!
Railison@aussie.zone 7 months ago
This is interesting. So therefore a plot of land in the centre of a city would be so expensive for land taxes that the best way to reside on it would be for it to be subdivided and have lots of people be responsible for its cost. Therefore, it encourages densification through tax.
LanguageMan1@social.vivaldi.net 7 months ago
@Railison @ajsadauskas That happened quite a long time ago here in the US, Canada and elsewhere.
ajsadauskas@aus.social 7 months ago
@Railison Exactly.