Common Wealth Canada
@commonwealthcanada
When a neighbourhood improves, owners get the wealth; renters pay that wealth. This is a fundamental imbalance in our society that land value tax solves.
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Our biggest challenges in housing, poverty, and productivity stem from our relationship to land. No policy will make homes affordable or end poverty without making land a worse long-term investment.
We could virtually eliminate income tax for Canadians if we better taxed land and resource rents instead. Instead, working families are getting the snot taxed out of them while rents rise.
"Land value tax makes housing affordable overnight. It pushes landowners to either sell or develop, and it starts to cost to deprive the community of the housing it needs." - @opportunityparty.info
Broadcast spectrum revenues "could and arguably should be distributed as dividends". - Brent Ranalli, author of Common Wealth Dividends But instead of being paid, Canadians are paying spectrum oligopolies.
Adam Smith, the godfather of capitalism, strongly believed that we should tax land, not workers. Why tax what people have earned? We should tax what people have not earned. That would encourage more housing and make our economy work better.
B.C. could eliminate taxes on income, property, transfer, and SVT with a single tax on land value. It could leave most households ahead and make the tax system much fairer.
Noone's talking about what we actually need, which is for prices to come down. The desire to get wealthy off land values is incompatible with the need for affordable homes. Again, no politicians are even acknowledging this.
By taxing land instead of buildings, owners in both scenarios pay the same amount. This encourages more efficient land use and discourages holding just for appreciation—making our housing system work better.
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Toronto real estate broker John Pasalis talks about land value tax, an old idea with renewed interest to improve the housing system.
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