Location Value Covenants versus Taxes
Location Value Covenants can be operated in exchange for your tax liability but with more incentives for people doing work and simpler administration.
By taxes we mean, taxes on production and exchange, your work. VAT, National Insurance, Income Tax, Capital Gains, Corporation
The key differences are:
In practice, these differences are minor. You make monthly payments as a property owner, like you would do business rates. You can arrange either through your local authority.
Location Value Covenants are a way of collecting the economic rent of land for public purposes. Currently much of it goes to private purposes (ie the banks). Tax on your work discourages production and exchange.
Paying government for benefits received directly is far more efficient and less prone to avoidance. What would you prefer: a single payment for your public benefits that you could identify with immediately. Or multiple taxes on an incomprehensible tax return that have no real connection with what you receive and who gets the benefits.
By indexing the payments to local land values, owners have a much more stable payment.
Swapping out the majority of current taxation in the UK is practicable. Location Value Covenants offer a better deal than taxes because:
* much less government infrastructure to support