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! 🙂
But the Productivity Commission, the Australian Taxation Office and our politicians can’t accept this truism.
So, who’s running the show? Rent-seekers or us?
Clearly, the 0.1 %, the rent-seekers!
This has been known for a long time. But who has the money to resist political change? Not the 99.9%!
Although the chart above is from 1985 only, there’s a full commentary on the index from 1972 below.