New by-passes raise land rents unfairly
In the Financial Times this week:
From Mr Charles Bazlinton.
Sir, With reference to Analysis, February 23, may I point out one of the land rent situations that is not taxed by government? Savills, the surveyors, published a study in June 2011 that showed how residential property values within 24 bypassed towns rose by between 9 per cent and 30 per cent (average 15.3 per cent) due to the new bypasses, “in addition to other general market-led price movements”.
Here is a case of land rents arising and accruing unfairly to freeholders. Despite the fact that both freeholders and renters similarly pay various taxes to build the bypass, it is only freeholders who see raised value in the land of their homes. When they sell, they then bank the gain, which could be seen as a “tax clawback” (see Ricardo’s Law: House Prices and the Great Tax Clawback Scam by Fred Harrison).
The article also suggests that managers of large companies have the ability to extract rents due to “dispersed shareholders”. Additionally, in the banking industry it is surely the monopolistic creation of credit with its resulting flow of interest that is the source of the stupendous remuneration.
FT Link: Letter 1st March 2012
The link to Savills' article: Get a bypass and boost your house price.
To find out more about credit creation and how banks use their monopoly the Prof Richard Werner YouTube interview Banking and the Economy is a good place to start (about 7 minutes).
posted by Charles Bazlinton, Author, The Free Lunch - Fairness with Freedom Buy on Amazon