In developing countries such as Brazil over a decade ago, 1% of population owned 49% of land.
In the UK/Britain 0.3% of population owned 69% of land. Britain’s biggest land owner was the Duke of Buccleuch and Queensberry, owning 277,000 acres. Around 277,000 football pitches conservation value at 2 billion plus and he does so not because of any individual talent or endeavour , but because he descends from a man who simply seized vast swathes of Scotland by unsavoury means.
Taxing land is fair and was the idea even raised in 1909 by Winston Churchill. Approx. 30% taxes cones from consumption, such as sales tax or value added tax (vat). Mere approx. 6% from property and remainder on other taxes.
Policy:
Tax land values, rather than property or any improvements to it, which would NOT penalise people who do up their home !
This policy would encourage the development of vacant and derelict land in areas where planning or zoning regulations permit it. Unlike stamp duty a ‘land value’ tax would NOT be a tax on property purchase, so not discourage people moving since the distribution of land is unequal taxing it would be highly progressive. Most poor own no land at all, whilst the very rich own vast amounts. So even a relatively low tax rate could raise big sums of money, and rate tapered so small land owners pay very little. Tax could be deferred until death to prevent granny forced out of home scenarios!
Where land registries are imperfect, the threat of seizure would persuade people to declare their ownership. Would be efficient, progressive, fair, stabilising and good for the economy. Over time shift burden of tax away from work and towards un-earned land wealth.
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