Wealthy gen Xers stand in the way of a Burnham tax on the super-rich
Wealthy gen Xers and baby boomers are defending the current tax system, which allows the super-rich to escape obligations to support society. A land value tax could introduce fairness into the system and improve the economy.
Intelligence analysis by Llama
The professional classes are defending the current tax system, which is complex and riddled with distorting incentives. A land value tax could introduce fairness into the system and improve the economy.
Imagine you own a piece of land, like a house or a farm. The government wants to tax you on the value of that land, not on how much money you make. This would make it fairer for everyone and help the economy grow.
Analysis
A $60B Vote of Confidence
The professional classes are defending the current tax system, which is complex and riddled with distorting incentives. This system allows the super-rich to escape almost all obligations to support the society that gave them huge wealth in the first place. The current tax system undermines the incentive for work, especially for salaried employees, and deters business investment. Wealthy gen Xers and baby boomers are the people in charge of pretty much everything and are a powerful lobby against changes to the tax system.
Why Cursor?
A land value tax (LVT) would introduce a huge dose of fairness into the system and would be a more effective way to raise funds to support measures to improve living standards. LVT would replace council tax and stamp duty with an annual tax on the value of land. This would raise £56.7bn, with about 70% of homes paying less than their current council tax. The super-rich would be unable to dodge the tax because they cannot shift the land they own overseas.
The Road Ahead
Economists are almost uniformly in favour of LVT. One of the leading proponents, Fred Harrison, has written about how LVT was discussed in the highest circles during the early 19th century, just as wealth was being accumulated and largely untaxed. Burnham has spoken in favour of a land tax, and he could phase in a scheme that replaces council tax and stamp duty, setting England, and possibly the other countries of the UK if they follow suit, in an exciting new direction towards land being used more productively and not as a store of wealth.
Key points
- Wealthy gen Xers and baby boomers are defending the current tax system, which allows the super-rich to escape obligations to support society.
- A land value tax could introduce fairness into the system and improve the economy.
- Economists are almost uniformly in favour of LVT.
- Burnham has spoken in favour of a land tax and could phase in a scheme that replaces council tax and stamp duty.
If the government introduces a land value tax, it could raise £56.7bn and make the system fairer for everyone. This could also help the economy grow and improve living standards.
The professional classes are powerful and may resist changes to the tax system. This could make it difficult for the government to introduce a land value tax and make the system fairer for everyone.
