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).