What is the point of LVT?

The primary purpose of LVT is to obtain a tax shift from those parts not having a taxable capacity on to those parts which do. If we tax those businesses with no taxable capacity they will cease. There is plenty of taxable capacity – an ability to pay tax – at those sites which enjoy more of the benefits provided by better facilities. Under our present system, some of that taxable capacity is taken as tax, but is then partly used in dealing with poverty caused by the present tax system itself. Much of the remainder of the taxable capacity is taken as unearned income by landowners.

 

What is the point of LVT – a discussion paper by Tommas Graves