APPLY THE IMPETUS WHEN THE BUBBLE BURSTS

vector-incentive“Research shows a land tax, based on land value and universally applied, will most affect higher value land concentrated in the inner and middle suburbs, causing land prices to drop and therefore increasing housing affordability.”

–          Tony Winter, AHURI

Yep, a universal land tax will bring all land values DOWN, but lower values less.  Note how all other taxes act to send prices UP and add deadweight?

So, when the Australian bubble finally DOES collapse might be the time to slash all other taxes–to get the economy moving–and apply an all-in federal land tax, eh?

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2 thoughts on “APPLY THE IMPETUS WHEN THE BUBBLE BURSTS”

  1. It’s not so much a matter of getting land prices down at that point as KEEPING them down, and stimulating the economy by the switch of the revenue base. It sure beats having to manufacture another ‘good’ war to beat the depression.

  2. when the bubble bursts the land prices will obv be much cheaper, as the speculation ends and the bad loans go into default. The banks will be insolvent the land tax will not work as its a price control sort of gimmick, with much lower prices to steal from. Cutting spending will work then yu need much less taxes to dole out, leaving money in the economy not taking it out, with people who spend others money for them, its common sense. The super industry shud go, the health industry shud be pay as you need, same with income tax and many others. 1 flat tax to run the public sector is enough for “necessary” items, but who can say what this is? I guess change will be made only as a last resort when the cliff has 1 foot over it, maybe.

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