Saturday, 12 December 2009

The Land Value Tax is a defensive tax

In praise of defensive taxes...

Defensive taxes are preferable to the alternative, aggressive taxes because they discourage unwelcome behaviour. Aggressive taxes punish innocent behavior, such as the Income Tax which punishes the exchange of labour and collaboration. The Sales Tax is also an aggressive tax.

An example of defensive taxes might include: a tax on pollution, speeding fines, parking fines, penalties for noise pollution. A charge for disorderly behaviour. The Land Value Tax would also be a defensive tax. Defensive taxes do not penalise innocent behaviour.

If we must tax, tax aggression and bad behaviour. Or at least help defend the people at the disadvantaged end of the spectrum by taxing things a careful and conscientious person might avoid.

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