Land Value Tax (LVT or SVT)

Christopher Fettes tries to draw attention to the implications of a land value tax in a letter to the times yesterday.
irishtimes.com/newspaper/let … 92288.html

LVT is not property tax. Neither do people generally seem to realise that it is the answer to all the prayers of those who wish for fairness and justice in the property market.

It has potential to incentivise and raise our productive economy through diverting investment away from land into the real economy. While taking the weight of taxes away from the real economy.

It ensures high quality of building stock, since it is the land being taxed, and not the construction itself.

People are afraid of it, since they are afraid of new taxes. However, if the taxes they pay currently on production and consumption are diverted to here, it results in a zero sum game. However, they will gain massively from the fact that such a tax would be the end of the FF property industrial complex.

It’s a no-brainer. However, people have been convinced generally not to think of it so through mainstream media propaganda.

Some further links:

The book that first introduced the concept, mentioned by Fettes - Progress and Poverty.

Here is a paper written by the head of school of real estate and construction economics in DIT - Tom Dunne LVT - (the objections Dunne raises might easily be resolved).

And here is a recent interview with Emer O’Siochru. - GrAgNAMA’s Channel

And here is another paper - smarttaxes.org/wp-content/upload … rdgiev.pdf

(Many people raise the issue of unfairness in that they have already paid significant taxes on their property and are in negative equity. I think in this respect, we could work out a tax credit for people in negative equity, based on a valuation of their building structure and the amount they paid over this (which would comprise the land component cost). Conversely, a similar system could be worked out of tax debits for the speculators (who were paid the land component cost and are thus in possession of money really due to the exchequer as taxes).

Relax, Never going to happen. though I would love to see them try

The farmers are one of the very few groups who will cheerfully drive up to Dail Eireann, drag the scum out and castrate the ringleaders. This is Ireland, shag all army and police, the government can be toppled any time some group decides to take no shit.

We’ll have the bullock O’Donoghue before this goes ahead…

I’m sure you might easily get farmers on side. The idea behind LVT is to grade taxes dependent on what the land is used for and how it is serviced. Since agricultural land is productive, and not serviced, it would be taxed at little or nothing.

As I’ve said before, some criteria for calculating taxes would be as follows. This onformation might easily be compiled in a GIS based database from information available in the land registry office.

Size of plot
Proximity to recreational amenities (sea, lakes, mountains)
Proximity to major urban centres
Quality of local authority services (broadband, roads, sewage, buses etc)
Intended social / commercial use etc.

If they rule agricultural out and exclude it from the legislation maybe… farmers wont fall for the oul 200 in the first year rubbish…

but then you need to think about the elephant in the room NAMA… add a tax to the developers and it could push them to default… NAMA doesnt want that, neither does the govt, not the developers…

Christopher Fettes was a founder of the Green Party. A pity then that he failed to vote against the programme for Government, as he has also become one of those consigning the GP to history and an early exit from Irish politics. On the day it was easy to vote against NAMA, safe in the knowledge that it would not get the required 66.6% to pass. If CF wanted to do something radical he should have voted and spoken against the PfG.

If it was well explained, I’m sure farmers would be capable of understanding the logic and how their interests would be served.

But NAMA’s a fucking ridiculous proposition. I don’t know why we’re even entertaining the idea. And these developers have already been in default for a year or two anyway. NAMA’s not going to change that. - We need to take every business person who was involved in land speculation who owes money and can’t pay on account of their speculative schemes collapsing to the bloody cleaners - just as the capitalistic system they used to worship dictates. Take everything they’ve got, then give them one of the empties down in Offaly that they helped spawn so they can start again if they’re so enterprising. I’m with the independents (non-institutionalised) on this one, like McWilliams, Matthews, Stiglitz etc. I really don’t know why we’re even talking about NAMA. We might as well talk obsessively about a scheme for every person in Ireland to chop off their little finger on Christmas morning for all the economic good it’s going to do us.

…funny I recall Christopher Fettes asking us to spoil our votes on NAMA!!

You mean he should have played a political game and talked against something he believed in on principle (the PfG), and voted in a manner contrary to his conscience (whether he thought it a lost cause or not)?

Fettes doesn’t strike me as someone who has much time for the gombeen, stroke pulling, game-playing side of politics. Rather, he says what he believes and follows through on that to the best of his abilities. It’s a better conception of democracy than that other shite imo.

Couple of other links…

Land Value Tax : Unfinished business by Emer O Siochru -
feasta.org/documents/landhou … ritax.html

And an article in the Times last May calling for its consideration (as per the consensus :angry: , the writer mixes it up with property tax in the all important first line of the article) -
irishtimes.com/newspaper/ire … 43663.html

renegadeeconomist.com/blog/f … -take.html