Action for Land Tax and Economic Reform

Land Value Tax (LVT) is an annual levy on the unimproved value of land, disregarding buildings, personal property, or other improvements. Regarded by economists since the 18th century as an efficient and progressive tax, LVT places the tax burden on titleholders proportionally based on location value, which strongly correlates with overall wealth.

Key Arguments for LVT

• Social Justice: Basing taxation on assets rather than income helps reduce inequality. In the UK, where the top 1% own nearly 25% of property, LVT ensures asset owners pay a fairer share compared to income earners.
• Infrastructure Financing: LVT captures the location windfall generated by public infrastructure projects (such as high-speed rail lines) directly from the landowners who benefit most, rather than burdening general taxpayers.
• Economic Efficiency: Because LVT applies regardless of how productively a plot is used, it penalizes land speculation, empty homes, and run-down sites. This encourages urban regeneration while shifting the overall tax burden away from income, profits, and enterprise.

Key Mechanics & Misconceptions

• Plot-Based Value: A vacant plot and a built-on plot of the same size in the same location pay equal tax.
• Publicly Derived Value: Location value stems from natural geography or community investments, making it just and efficient to tax.
• Green Protection: Contrary to myths that LVT harms green spaces, it promotes urban revitalization—evidenced by cities like New York, where surrounding property tax gains funded Central Park.