Tuesday, 22 January 2013

Great Churchill Quote On Land Value Tax

In 1909 he said:
"Roads are made, streets are made, services are improved, electric light turns night into day, water is brought from reservoirs a hundred miles off in the mountains – and all the while the landlord sits still. Every one of those improvements is effected by the labour and cost of other people and the taxpayers. To not one of those improvements does the land monopolist, as a land monopolist, contribute, and yet by every one of them the value of his land is enhanced. He renders no service to the community, he contributes nothing to the general welfare, he contributes nothing to the process from which his own enrichment is derived ... the unearned increment on the land is reaped by the land monopolist in exact proportion, not to the service, but to the disservice done."




Caroline Lucas MP said:

“A Land Value Tax could be a fair and progressive way to encourage both the creation of more homes, and a more efficient and sustainable use of land by making it unprofitable to sit on unused land.

“Over a period of time, it could help to stabilise the property market and tackle the boom-and-bust factor that contributed towards the 2008 financial crisis – discouraging disproportionate amounts of capital from being tied up in property and excessive accumulation of debt.

“Unfortunately, despite increasing support for the idea amongst economists and politicians (2), no government has yet been willing to look seriously into the possibilities of introducing an LVT.

“With the IFS Mirrlees Review stating that the case for a ‘thorough official effort to design a workable system’ of LVT is ‘overwhelming’, I’m now calling on the Treasury to commission research into how the reform might work in practice.

“The signs so far are not encouraging – in responding to my previous debate on LVT, Treasury minister David Gauke stubbornly refused to consider the benefits of the tax and completely misrepresented the IFS position.
“But I’m hopeful that the Treasury will look again at the need for research into an LVT, and recognise that the UK is in dire need of progressive solutions to make our broken tax system more effective.”

No comments: