Why the Right is wrong: it won’t allow unearned economic rent to be socialized.
Why the Left is not right: it won’t allow unearned economic rent to be socialized.
Why the middle is right but left out: it wants unearned economic rents to be socialized (instead of taxing wages and profits).
Why is it so difficult to sell the ‘single tax’?
Economic performance is halved by current taxes carrying deadweight losses of more than twice the taxes levied into the economy, so wouldn’t a charge against land values (having no deadweight at all) be far more practical?
As the uber-wealthy own not only more land but the most valuable land, wouldn’t such a charge on land values be more equitable than taxing wages which applies a lid on effective demand and inflates land prices?
As ‘land’ (including spectra, etc., in the economics sense) is currently grossly undertaxed, this has channelled natural resource rents (created by the community) mainly to the 0.1%. As a result, the poor and middle class have suffered badly and are overly-indebted.
Has capitalism failed, or is this no longer capitalism? Is it not Rentierism? We seem to have become slaves to banking and the 0.1%, the former of which was actually meant to serve us?
There’s only one thing needs to be socialised in order to put banking and the 0.1% back in their rightful place, but they have the money and control the political hegemony. I guess that’s why it’s so difficult to put into practice the economic truths of Adam Smith, David Ricardo, JS Mill, Tom Paine, Henry George, Mason Gaffney, Joseph Stiglitz, Michael Hudson?
But this sorry state of world economies is unsustainable and must implode.
Let’s hope we then find the wit to rediscover the socio-economic eternities. What’s not to understand about these boom-busts facts on the Australian economy?
Sir Ronald East (1899-1994), Australian civil engineer:
We have gone wrong on the land question, and everything else has gone wrong automatically. I believe that there is no greater or more urgent task of leadership for the engineer than to help the community to a clear understanding of the simple economic laws that govern the distribution of benefits from human activities.
Hon. Sir Allen Fairhall (1909-2006), Australian Liberal Party Politician:
I have no doubt that present political differences would be vastly reduced and the progress of the nation towards social harmony with prosperity in equity would be hastened if the basic truths of the Georgist philosophy could be understood accepted and applied.
- Maybe Ken Henry did display ‘attitude’, and maybe he didn’t want to give simple ‘yes/no’ answers, but your report was too tough on him in comparison to some of the miscreants who gave evidence at your hearings. [ Jessica Irvine’s “From smart guy to fall guy” (The Age 9/2) shows Ken Henry’s career had been stellar up until his chairmanship of the NAB. A great irony eluded her, however. Mortgage debt/bank profit is built upon the growth in land prices, particularly during real estate booms. Was it not “The Henry Tax Review” which argued why a land tax should replace a number of Australia’s ineffective taxes? Would this not have acted to keep a lid on Australia’s real estate bubble (which chairmen of the big four banks had to deny existed), and to curtail many of the banking rorts which arose in such a heady market? ]
- I see what you hope to do by having clients pay mortgage brokers’ fees, but it will have savage repercussions on the industry. They were set up by banks to be their ‘patsies’:-
Except, Dominic, we wouldn’t have to levy an LVT that would raise the SAME amount as all other taxes, because current taxes carry an incredible deadweight loss of about twice the amount levied into the economy (see Martin Feldstein on income tax deadweight). Because LVT has zero deadweight loss, we’d only have to raise half the amount of other taxes! 🙂