INCOME TAX, THEN DAYLIGHT
In theory, income tax sounds very progressive, doesn’t it? It’s sorely abused however – and not simply by using smart lawyers and accountants. If you’re a mega-wealthy landowner, you will claw back every cent you’ve ever paid in income tax via the uplift in your land values – i.e. on the back of the public’s rent that you’ve been able to privatise.
Are renters able to offset their taxes in this way? Can the middle class do this? Is the rent of our land grotesquely under-taxed?
I’ll let you ponder the answer to those questions for yourself.
While land value-rating municipalities continue to distort their rating base with minimum rates, effectively subsidising the owners of more valuable land, and capital improved value rating municipalities penalise construction, and states at the same time underutilise their land-taxing powers–and both these levels of Australian government continue to put their hands out to the federal government for assistance–there can surely be no greater advertisement than Dr Putland’s chart for implementing the recommendations of the Henry Tax Review for an all-in federal tax?