INCOME TAX LEVY TO PAY FOR FLOOD RECOVERY

                       Kangaroo finds refuge
Kangaroo finds refuge

Most Australians have a feeling there’s something wrong with the manner in which Australian Prime Minister Julia Gillard proposes to assist the tragically flood affected residents of south-east Queensland. They need our help, but is increasing income tax the way to do it?

Of course not.

An Abbot-led Liberal government would certainly have done no better, but Prosper Australia’s David Collyer today shows how the Labor government has let another positive opportunity (that could have more easily been sold to the Australian people) slip through its grasp.

Moreover, when capturing land rent, valuations of catastrophe-affected lands will decline sharply and naturally, to recognise the plight of people. As land value always fairly reflects owners’ situations, they will always make the best revenue base. Relative incomes don’t do this. Big landowners recoup their taxes in the rise in the price of their properties.  Can renters and the poor do this?

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