LAND VALUE TAX: A VIABLE TAX ALTERNATIVE?
HENRY LAW, LAND VALUE TAXATION CAMPAIGN
Land value tax (LVT) has been high on the political agenda for most of the past two centuries; in the three decades up to World War I it was backed by a widespread popular movement. Thus, in the broader perspective, its eclipse since about 1950 is exceptional. The flurry of fresh interest in recent years is due, amongst other things, to the
realisation that tax systems have hit the limit to what they can raise, whilst expectations of government continue growing and attempts to cut large welfare bills consistently fail.
LVT in its classic form is a tax on the annual rental value of all land, ignoring buildings and other developments, the valuation being on the assumption that the land is at its optimum use. It would not be additional to existing taxes but a partial or complete replacement for them. Proponents argue that it is a precondition for the solution of a wide range of apparently intractable economic ills. Opponents usually come up with objections
which are criticisms of what is not actually being proposed. Continue reading