We should end the root cause of housing injustice (by using a Land Value Tax): the Land injustice.

Economists worth their salt know it: the natural resources, & first of all Land, are not made by man or earned, but the whole activity of society gives them value, and the root cause of injustice in common human struggle in life is that, all except a little bit, has its value collected by a tiny fraction of 1% who own most of the Land(& buildings) (without paying their fair share of what they receive from everyone else, in rent). The remedy is straight, simple, effective, has worked where it has been implemented: just collect the value generated by the whole of society, which first goes to the owner/Landlord in the rent of Land for services rendered, collect that from the owners/Landlords on only the rental value of the Land (but all or at least most), to put it in the public purse, for re-use for the whole of society in social investments & expenses, with a good part to share equally between all residents of the country. This levy is just a fair usage fee on those that have benefited from the public investments, is called Land Value Tax, does not distort any economic activity or decision, does not have any dead weight at all, Land cannot be hidden, so cannot really be avoided, and bring about most economic justice, by replacing most or all the taxes on trade/on ordinary labour/income level, which do have a dead weight & serious negative effects on the economy. Without LVT, only speculation & Land banking will always be much stronger & the costs of renting & buying will always be increasing much faster than the actual income that can be earned in the rest of economy to pay for renting or buying (because the existing big Landlords already have the money to outbid any potential 1st time buyer).
& an hybrid version(LVT that takes acount of taxable income) can be merged into a variable size tax band of income tax (size=LVT/0.6 with 60% rate for example)(this is also where the unconditional share/basic income paid to every resident is clawed back by income tax, the rate is a high rate of clawing back by income tax, just an unconditional basic income) at the bottom of the band (only for Land owners) (the tenants already pay it included in their rent), leaving less tax in the middle bands of income (in the lower & middle bands for the tenants), just residual income tax on higher bands only just to prevent excessively high damaging income inequalities, (e.g. on the super-rich earning more [after LVT] than e.g. ~£90k/household per year).
The crisis of capital prices of houses is complex, and also requires, in order to be solved, for the banks not give any mortgage or loan at all with money that does not exist before: so to change fractional reserve banking into full reserve banking & sovereign money (created by a democratically accountable independent committee [of the Bank of England][government-owned central bank], in quantity related to the growth of the real wealth & value created in the economy) as well; & last but not least, actually physically build the (affordable) houses in the numbers by which demand exceed supply(& the LVT makes houses affordable again) (eg. just about 2 millions over about 6 years)(also involves capping the demand, by controlling the sum of net immigration & total natural growth by the excess of number births over deaths & of number of new households, compared to ending households)[eg. when 2 marry, that is 1 new household replacing 2 ending single households].

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Needs to be simpler.

5 month(s) ago

Public Vote

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