A BRIEF EXPLANATION OF BASIC PRINCIPLES

I suggest that there are four basic principles or characteristics of LVT that may be expressed under the headings:

1. Community created value.
2. Taxation according to means.
3. A direct tax.
4. Simplicity and clarity.

This is the principle of returning to the community, by means of a tax or levy, the value that the community itself has created. This value is measured through land values, which are simply an indication of collective prosperity.   Continue reading

Taxation according to means is an essential characteristic of any fair tax system. Where this happens the tax is described as ‘progressive’. With LVT the tax burden is imposed according to relative prosperity as measured by land values.     Continue reading

LVT has the advantage of being a direct tax. One of the arguments against indirect taxes is that they are indiscriminate––they are paid equally by the rich and poor alike and are therefore unfair. However they are popular with governments, as they allow the people to believe that they are not really being taxed, they are simply paying higher prices.       Continue reading

An important characteristic of LVT, which many other taxes do not enjoy, is its openness, clarity and predictability, which makes it a tax that would be difficult to avoid.               Continue reading