On the necessity of a land tax

Linked on our blogs with School of Cooperative Individualism. – Published on slugger o’toole, by blog owner Eamonn Mallie, July 9, 2010.

Constantin Gurdgiev gave a good overview of why a land tax is essential if Ireland is to build a smart / knowledge economy a few months back on the Renegade Economist. It’s probably worth reviewing his arguments today, the day Fianna Fail ruled out a (admittedly unfair) flat rate property tax. Gurdgiev blames the disparity in taxation between investments in human capital (e.g. increased education) – typically each additional Euro earned is taxed at 53% – and investments in land, where the return on investment is taxed at a much lower 26% or so (sometimes even 0% because of various tax breaks). 

Meanwhile in the Financial Times, American progressive left economist Michael Hudson argues that there is an alternative to austerity – the burden of taxation should be moved from labour to resources such as land:  … (full text).

Links by key-word Land Monopoly:

Is it true that over the centuries Real Estate created more wealth than any other industry (Citations)?

Winston Churchill on Land Monopoly;

by Fred Harrison, Reprinted from Land & Liberty, May-June, 1983 (Fred Harrison.org);

The housing bubble dilemma;

on wikipedia;

Kopp Verlag, by Niki Vogt, July 15, 2010;

Tragedy of the anticommons;

Mutualism (an economic theory);

Geolibertarianism;

Excess burden of taxation;

Center for the Study of Economics.

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