I see a grain of truth in there, but this does not make it a valid or complete argument. In general, from an efficiency point of view one should tax those goods/service that respond the least (this, however, often clashes with equity considerations). Land, in an geographic sense, does not adjust. Yes However, in practice, there also a lot of margins of “productive land” that are affected...

Most proponents of land value tax these days do not appear to understand the theoretical background to what they are advocating. This is usually revealed when they talk about a wealth tax on land, or propose that the tax should be levied as a percentage (usually between 1% and 5%, of the selling price). The primary value of land is its gross annual rental value. The point about gross value is that...

Saudi Arabia is the latest country to catch the VAT meme. The country introduced it at a rate of 5% on 1st January. They ought to know better. Land value tax is a traditional form of Islamic tax. It is known as Kharaj, and though originally intended for agricultural land there is no reason why it should not be applied to urban land, worth many times more than agricultural land. The Saudis should...

What would a Georgist European Union look like? Member countries raise the bulk of their public revenue from an ad valorem tax on the rental value of land. Contributions to the EU central fund in proportion to each country’s aggregate land rental value. No tariffs charged on imports to or within the Single Market area. No restrictions on imports to the Single Market area, subject only to...

Over the past few days, The Guardian has been running a series of outraged articles about the so-called “Paradise Papers”, which are revelations about tax avoidance by the great and the good. The outrage is humbug. It is significant that The Guardian has not opened any of its articles to comment. If no laws have been broken, than the outrage must be backed by calls for changes in the...

I received this from a correspondent yesterday. It is food for thought. “From my contract work, more evidence of the tax collectors’ wicked approach: He won’t come after your because your tax planning is fraudulent per se. You’ll attract their attention based largely on how much more they estimate they can squeeze out of you relative to the associated collection costs of...

PROTECTION OR FREE TRADE? was written by Henry George in 1886. It is still in print and readily available. It rebuts most of the arguments being put forward by both camps in the Brexit debate, as well as the protectionist sentiments that seem to be at large in the USA following the election of Donald Trump. It has become essential reading, for it provides a guide to the morass of debate that has...

The Single Market is described as a free trade area. In reality, is very expensive. It means that if you want to trade with me, even if we are next-door neighbours, we can only do so legally over a 20% high tariff wall between us – Value Added Tax. In some EU countries, the internal tariff wall is even higher – 25% in Sweden. That is not much of a free trade area. Fee trade area, more...

The death of the Duke of Westminster has drawn attention to the fact that the estate is not liable for inheritance tax as it is vested in a trust. This has led to indignant comments and charges of tax avoidance. The Grosvenor Estate is one of several owned by aristocratic families, which together encompass a large area of Central London. The pattern of land ownership in Central London has hardly...

The immediate aftermath of the Brexit vote was always going to be a period of disruption. The smart response would be to take advantage of the freedom available outside the strait-jacket of EU regulations. There are a couple of immediate boosts the Chancellor could give to the UK economy. Reduce VAT on building works to zero for an initial period of two years. Reduce VAT on restaurants and hotels...