The Land Value Tax encourages a more efficient use of the resources available because to hoard assets is penalised. There are only a limited quantity of resources on the planet and they should be used sparingly. The best way to effect efficient use of resources is to have a (legal) mechanism by which assets can be removed from the wealthy on grounds of access. Taxes generally rely on pursuing those who have engaged in an activity such as selling labour, or trade, before they suffer tax. The Land Value Tax enables resources to be transferred from those who are inactive, save for their defence of land.
Property taxes allow the Government to control the use and hoarding of precious resources. The Land Value Tax allows the population to retaliate against those who exclude others from too great a quantity of resources. It allows the poor access to under-used resources.
Those who fail to make good use (at a fair price, to others) of their resources should suffer the Land Value Tax.
Wednesday, 2 December 2009
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