Dangerous road!That's a bit like impecunious governments of yore selling off freeholds (which gave the purchaser a ground rent discount), which is part of what got us into this mess.In an LVT world, the only way for government to increase receipts is to make the country a nicer place to live.
Well selling LVT discounts will reduce the citizens dividend.So I hope people will notice it.
Hi AC1, I got here from a link on Guido's blog.I'm no expert in economics, can you explain what LVT and this Citizen's Dividend means for the likes of me, a somewhat mal-affected reject of the Comprehensive education system.
Basically an LVT and Citizens Dividend means that the cost of renting the average (median) property in the U.K. would be free.Basically everybody with land rights pays the crown for the land value (they are paying for the right to exclude others from the benefit of the land). The crown then returns this money equally to citizens as a dividend (the state takes it's cut here too).This tax is based on the ideas of Adam Smith and David Ricardo.As you can see the more the state Bureacrats spend, the less is left for a dividend. I hope this will ensure government is right sized over time.
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