TAXI LICENCES ARE SIMILAR TO LAND TITLES
OK, so because Victorian taxi licence holders are going to have to pay higher rents for the government-granted privilege of holding a licence, the value of taxi licences is going to diminish.
That makes sense: there’s less public taxi rent going to be capitalised by private individuals.
And, of course, seeing your potential capital gains disappearing before your eyes makes you exceedingly angry as a licence holder. You’re even likely to get in the faces of Victorian politicians on the steps of Parliament House.
None of us like losing privileges we didn’t really earn, but don’t taxi licence holders owe a market rent for this restricted product – a taxi licence?
Had the market rents for licences been captured by the State government in the first instance, licences would never have been transferring for the sort of astronomic figures they reached. A business would not have been created out of a private monopoly in public taxi rents.
But things got out of hand: bad practices had been allowed to develop, and get worse.
Very much like the nose-bleed heights to which our land prices have been allowed to ascend.
Maybe it’s beyond time the government began to capture our land rents, too, if young people are ever going to be able to afford a home?
It’s action that does need to be taken …. even if it’s going to make some of us very angry .
PAYING POLITICIANS TO BE USELESS MAKES NO SENSE
We know what the problem is; tax systems give all the advantages to “property investors” – over first home buyers.
We all know what the answer is; more revenue from land taxes and municipal rates – as indicated by The Henry Tax Review, KPMG-Econotech, Price Waterhouse Coopers, etc. (How do we manage to keep ignoring these reports?)
Is it because we can’t do anything that might keep the lid on escalating land prices? Yep, the 0.1% say high real estate prices are sacrosanct and, unfortunately they get a lot of support from the fearful and the mindless.
But isn’t this a “Catch 22” situation? Nothing changes?
That’s right, but as usual the impasse favours the big real estate speculators. (The little “would be” guys are all going to get caught up in the upcoming collapse in property prices.)
But hasn’t the US and much of Europe already experienced financial collapse caused by bursting residential real estate bubbles?
Yes, but is there a sign of any nation addressing this economic madness? How about Tony Abbott, Bill Shorten in Australia? Oh, and Joe Hockey, of course! Nup. They’ve got to keep their mouths shut on this one (or BS that Australia’s “a long way from a housing bubble”, eh, Joe?) They’re welded on with the 0.1% and can say nothing about the real cause and cure of the global financial collapse. Then they have the hide to pretend they’re concerned about jobs and the future. Stephen Koukoulas is happy to assist them.
Welcome to Realpolitik 21st century style, folks!
OH, YOU HAD MY EMAIL ADDRESS, SHADOW TREASURER? …. “WITH THANKS”?
The bloke on the left gets the gig
From: Chris Bowen [mailto:labor=australianlaborparty.emailnb.com@] On Behalf Of Chris Bowen
Sent: Sunday, 13 October 2013 2:45 PM
To: Bryan
Subject: Our new Labor Leader
Bryan,
Together we’ve chosen a new Labor Leader.
With a Caucus vote of 63.95% and a membership vote of 40.08% which totals 52.02%, the new Leader is Bill Shorten.
This historic vote which combines the votes of Labor Caucus with the votes of 30,426 Labor Party members – a 74% turnout – has changed our great Party forever and is already making us stronger. Since the leadership campaign started more than 4,500 people have said they want to join Labor.
Both Anthony Albanese and Bill Shorten campaigned hard and campaigned with respect for each other and a firm commitment to the Labor Party.
To those who cast their vote, thank you for your involvement.
Today we start the work of holding the Abbott Government to account and showing we are a better and fairer alternative for Australia’s future.
With thanks,
Chris Bowen
COMMONWEALTH NO LONGER BUILT UPON “THE FAIR GO”
Yeah, reading THE AGE editorial today “Commonwealth built on the fair go”, I see what the editor is getting at – a lower taxation rate doesn’t necessarily make you a better country.
But I’m reminded of the founding of our national capital, on which I’m to give a presentation at Chengdu next month … it’s all about from where we derive the common wealth. Canberra tried to do it in such a way to keep the land sharks at bay, but has ended up losing out to them – badly.
There’s more than a hint about the correct revenue base in the first letter across the page from THE AGE editorial, from Norman Huon of Port Melbourne: “… Norway – has had the wit and community support to put a portion of its windfall from exploitation of natural resources aside for future generations.”
Well said, Norman.
Then, in following letters, well informed people are decrying how proper town planning has given way to the demands of developers.
Sure there have been too many town planning delays frustrating developers, but lowering town planning standards instead of removing the blockages has thrown the baby out with the bath water.
In Victoria, this has been accompanied by the substitution of site value rating with capital improved rating–and in the site value rating states of New South Wales and Queensland by municipalities increasing the minimum rate–so that the poor subsidise the wealthy and carte blanche is delivered to holdouts who’ll now develop only when they’re good and ready, and when there’s big bucks to be made in escalating land values.
Government has become superfluous in Australia: private rent-seekers now run the show.
Rediscovering an economics that accounts for nature
The great Mason Gaffney will be ninety next Friday. He has become recognised in his own lifetime as one of the handful of economists who have upheld the banner of intellectual rigour within neoclassical economics’ vast deceit.
A companion of Gaffney’s quiet integrity has been his witty and incisive turn of phrase.
The following paper by Brian Czech is as much a tribute to Mason Gaffney as it is to the far-seeing economics of Henry George. I recommend it as an excellent read: Czech-Production-Function-and-Henry-George
To your health, Mase!
THAT’S WHAT I’M TALKING ABOUT!
“Growing divide between rich and poor in the Australian housing market” – Jessica Irvine, Herald Sun
“Country’s rich have lion’s share of income growth” – Tim Colebatch, The Age
“Where on earth are the world’s richest 1%?” – The Guardian
BRING ON THE INDEPENDENT VOICES!
Cathy McGowan’s successful campaign for the Victorian federal seat of Indi shouldn’t go unremarked here. Insofar as she ran as an independent against the Liberal and Labor parties, her win was inspirational to all those Australian voters locked out by the behind-the-scenes policy-making of the major parties and their rigid party discipline.
The rurally-based voters of Indi obviously decided sitting member Sophie Mirabella was no longer for them on the basis of McGowan being a known local identity whose voice might represent them better.
Time will tell.
Although there are clear differences, not the least of which are the respective results, Indi reminds me of the federal election for the South Australian seat of Kingston back in 1990.
Australian Democrat Senator and leader of the party, Janine Haines, had bravely decided to stand for Kingston to make the switch from the Upper House.
I wasn’t a Democrat voter, but noted Haines had made statements to the effect that the Australian Democrats were considering reintroducing the federal land tax and–had it already been in place–Australia may not have experienced the recent real estate bubble that was beginning to burst across Australia.
As a land-taxer myself, her strong statements caught my attention, because favouring a land tax was certainly going to bring the scare-mongers out of their closets and into the election.
I wasn’t wrong. The Labor and Liberal parties immediately joined forces to let the voters of Kingston know that “Janine Haines is after your house!” That, apparently, is the effect of a land tax. It was shameful stuff and typical bully tactics.
That scare did the trick. Sitting Labor member, Gordon Bilney, was returned to office with a vote of 37%; Liberal Judy Fuller received 33% of the vote, and Janine Haines got a remarkable 26.4%, despite both parties having ganged up on her to ensure she couldn’t possibly make it into the House of Representatives.
I retained some of the advertising, to remind Georgists of the forces with which they have to contend in order to get a land tax up politically. Had Georgists been better organised, we might have supported Janine Haines better than we did.
Not that Cathy McGowan is a land-taxer like Haines, but she’s independent of the bully boys and was still able to overcome them. It was a remarkable result, so I certainly congratulate her and wish her well as the seat of Indi’s new federal representative. Let’s hope she proves to be a Tony Windsor.
FROM THE PRIMER
YES, BEN FROST, I WELL UNDERSTAND YOUR GRAFFITI
