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Land Value Tax (LVT) is a levy on the unimproved value of land, it disregards the value of building, personal property and other improvements to real estate. LVT has been referred to as "the perfect tax" and the economic efficiency of a Land Value Tax has been known since the eighteenth century. LVT is a progressive tax in that the tax burden falls on titleholders in proportion to the value of locations, the ownership of which is highly correlated with overall wealth and income.
Land Value Tax would be payable each year depending on the location and size of a plot. We advocate that it should replace some existing taxes. It should not add to the overall tax burden, its purpose is to shift tax away from income taxes . Land means the site alone. A vacant plot in a row of houses would be taxed the same as a similar built-on plot. It taxes the size and location of he plot. It does not tax buildings or other works.
There are three strong arguments for the tax. It is socially just. It is the best way of financing infrastructure. And it is economically efficient.
First social justice. Property taxes are fairer than income taxes. In the UK the wealthiest 1% own almost 25% of all property. Today we base the tax system almost entirely on income rather than assets. This means the very rich avoid paying their fair share of taxes. This entrenches inequality.
Second, infrastructure. The benefits of infrastructure are uneven. A fast rail line from London to Birmingham will provide a windfall for property owners in those locations. It won't benefit other locations nearly as much. At present every taxpayer, everywhere, pays. Land value tax corrects this. It recoups costs from those who benefit the most.
Third, economic efficiency. Land value tax is payable whether or not the owner actually uses the plot productively. It penalizes owners of empty houses; owners of run-down sites. Unlike now, they would be taxed at the same rate as a site in productive use. This would promote inner city regeneration. There is a myth that Land Value Tax would destroy green spaces. In fact, the City of New York made a profit when it created Central Park. It greened over existing built-up areas. The increased property tax from surrounding neighbourhoods paid for this.
In summary, Land Value Tax is pro-enterprise and green. Its introduction would allow other taxes to be reduced; especially those on income and profits. Enterprise would be better rewarded. Building on a property doesn't change its location value. The location value of land comes from geography -a beautiful view; or from investment elsewhere - for example a high speed railway. Location value is maintained by society. It just and efficient to tax it.
QUILLIGAN SEMINARS - Dates and registration points [forgive repetition if you have already registered]
Introducing the Land Value Tax Video The land is made valuable by the the work and efforts of people around them. Taking back societies contribution in the form of a Land Value Tax would allow us to reduce taxes on workers and business.
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Adam Posen argues for counter cyclical property taxes, new financial institutions for SMES and to call the bluff of those arguing we have to be exposed to the follies of the biggest banks.
By popular request, ALTER has produced a three minute "elevator pitch" selling the concept of land value tax. Ideal as in introduction during conferences and seminars where it is essential to get members of the audience up to speed quickly.
Emptyhomes.com estimates: 720,000 empty homes are currently empty in England of which 279,000 are long- term empty (i.e. empty for more than six months) 930,000 empty homes across the UK, 350,000 of which are long term empty. A report for the government in 2004 estimated that there were a further 300,000 empty flats above shops or part of other commercial buildings.[1] House builders sitting on 400,000 undeveloped plots of land with planning permission - The Daily Telegraph [2]