Thursday, January 15, 2009

Part two of my LVT series at the ASI

Property bubbles, credit bubbles, and land value tax

Concluding that ... If the 7% flat tax were applied to all value in excess of the original bricks and mortar value (adjusted for inflation), i.e. to the bubble element as well as the location value, this would act like a much higher interest rate thereon, and thus dampen down property price bubbles (and hence credit bubbles) as well as sending a "market signal" to existing home-owners that planning permission is being far too strictly rationed.

Posted by mark wadsworth @ 09:58 AM (840 views)
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