On the other side of the affordable housing issue is the fact that 64 percent of all
bank lending is for mortgages on mainly second-hand houses. Bricks and mortar are
a safer bet than growing businesses. And that is even after the world economy was
brought to its knees recently by the collapse of derivatives based on junk mortgages.
No wonder the economic recovery is weak.
LVT is not a panacea, but it can help to address some of the above persistent
economic problems. Standard economic tests show that LVT meets all the criteria of a
good tax. If set up correctly, it is impossible to evade, and with all the data in the
public domain, is difficult to challenge.
“It will be essential to abolish all the current property taxes: in
particular council tax, business rates and stamp duty land tax”
Because LVT is levied on owners, not occupiers as with current property taxes, the
first step would be to complete the Land Registry, although there are other sources
information about land ownership. If a title owner cannot be established, then a
tenant should be allowed to pass the LVT bill to the rent collector. If the land is
unused, then it should be claimed by the local authority.
All land must be valued initially and revalued at frequent intervals. This is not a
problem – it is done in Australia, Denmark and elsewhere by professionals, with the
aid of standard software tools. Some land, especially some publicly-owned land, will
have no market value. A single rate is applied to the individual valuations and
demands sent out annually. The current system of billing for council tax and business
rates by local authorities would be convenient, allowing for monthly payments. In
Sweden they use the income tax system.
English countryside
The decision then would be what to do with the potential £200 billion yield. It would
provide an opportunity to reform our chaotic tax system, boost public expenditure
and/or pay down debt. It will be essential to abolish all the current property taxes: in
revolutionise.it
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