Tuesday, September 27, 2011

Land Value Tax: correction

The previous post (Sept 16th) contained an error. The phrase 'land value tax on property transactions' should read
'land value tax on property'

Land value tax would be a regular annual levy on all land values and not a one-off tax on property transactions which is what happens in the UK now with Stamp Duty Land Tax when a property is sold

Stamp Duty Land Tax can inhibit the sales of underused homes from retirees to families needing more space.  Land value tax being an annual charge, would help prevent price bubbles developing and enable the lowering of other taxes. Also, in incentivising ‘empty nesters’ to sell their large houses which demand high land value tax from a reduced income, it would encourage what SDLT currently inhibits, and thus reduce a market distortion.  

For details of how LVT could be introduced whilst safeguarding poorer home owners, read the book The Free Lunch.
posted by Charles Bazlinton

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