School of Economic Science
Letters to the Media
Goto page Previous  1, 2
 
Post new topic   Reply to topic    School of Economic Science - Study Forums Forum Index -> Economics Forum
View previous topic :: View next topic  
Author Message
Peter Bowman



Joined: 02 Nov 2008
Posts: 27
Location: London, UK

PostPosted: Wed Jun 27, 2012 10:07 pm    Post subject: something for nothing society Reply with quote

Independent 27th June

I'm glad David Cameron wants to end the culture of entitlement, the something-for-nothing society. There are clearly too many people who enjoy great wealth without having had to work for it.

Inherited wealth is passed down the generations to those who have done nothing to deserve it. Can we expect to see inheritance tax rise steeply, and perhaps a wealth tax and a land tax too?

After all, no one can generate wealth without the security and infrastructure provided by the state, so it seems perfectly reasonable that the state which has enabled wealth creation should take the lion's share and the children of the wealthy should be content with a gift or a token from their predecessors.

A very large increase in inheritance tax would raise far more money than cutting housing benefit for the under-25s.

John Pedersen

Totnes, Devon
Back to top
View user's profile Send private message
Brian Chance



Joined: 09 Nov 2008
Posts: 115
Location: Croydon Surrey U.K.

PostPosted: Wed Jun 27, 2012 10:09 pm    Post subject: The morality of taxation Reply with quote

The Editor
The Times
Sir
It is the taxation of earnings that is immoral. The proper source of income to meet state expenditure is the unearned benefit that flows from the ownership of land. The value of land derives from the presence and work of the whole community. Without that, land would have no value.
Why tax the earnings that create the value of land while a large part of the unearned benefit received from its ownership is legally tax-free?

This letter was published 27 06 12
Back to top
View user's profile Send private message
Peter Bowman



Joined: 02 Nov 2008
Posts: 27
Location: London, UK

PostPosted: Fri Jun 29, 2012 8:53 pm    Post subject: Joseph Stiglitz Reply with quote

Joseph Stiglitz has just brought out a new book: " The Price of Inequality: How Today's Divided Society Endangers our Future"
He was speaking at the LSE today
From the US version of Financial Times 29th June.

Sir, Joseph Stiglitz is concerned that America has become less egalitarian, and no longer the land of opportunity (June 26). He mentions reducing rent-seeking as a solution, but he does not mention the paradigmatic form of rent-seeking: collecting the ground rents of land. If an increasing share of gross national product is going to the top 1 per cent, it is at least in part because they are the people who own most of the valuable land, and the rents of land are absorbing a larger share of production. No one is making more land to keep the price down by competition.

There is a solution: tax the value of land, and cut taxes on earned income, sales and so on. That would make the tax system more progressive, and, unlike most schemes for doing so, it would not cause the productive to quit work, turn their efforts to finding loopholes in the tax code, or take their skills and capital elsewhere.

Nicholas D. Rosen, Arlington, VA, US
Back to top
View user's profile Send private message
Leonie Humphreys



Joined: 23 Sep 2008
Posts: 216
Location: West Dorset, UK

PostPosted: Sat Jun 30, 2012 5:29 am    Post subject: Reply with quote

Moved to Henry George topic.
Back to top
View user's profile Send private message
Brian Chance



Joined: 09 Nov 2008
Posts: 115
Location: Croydon Surrey U.K.

PostPosted: Wed Apr 30, 2014 10:24 am    Post subject: Reply with quote

Letter to 'The Times' (not printed!) in response to an article on Saturday 26th April

Caitlin Moranís mathematically inclined friendís calculations suggest that the average house purchased thirty years ago at an inflation adjusted price of £65.214.29 could now be sold for £250,000. Where has the profit of £184,785.71 come from? It has probably not yet come from anywhere. It is a monetary claim on real wealth (goods and services) that can come only from the future work of someone else. The money has rarely been saved by the purchaser. It has been conjured out of thin air by a bank. Usually it is the owner-occupier who has borrowed the money and must devote a substantial part of her labours for many years to repay the loan with interest. Increasingly it must come from the labour of a tenant who will never even own the house.
But the most extraordinary fact is that this unearned benefit for the vendor has actually been created by the presence and work of those who are expected to pay for it. It is the myriad services provided at the location by work of all kinds which gives the location its value. It is why Caitlin Moran lives nearer to The Bishops Avenue and Hampstead Heath than to the wet slate roofs of Aberystwyth.
A smart lady like Ms Moran will see that this is grossly unfair. She could badger her economist colleagues to trumpet the need for LVT, the only possible final remedy. Alternatively she could study the wisdom of the ancients with their fifty year jubilee as explained in Leviticus.
Unless the house price bubble can be deflated gradually by LVT, it will eventually burst with a very loud pop indeed and many claims on wealth to be provided in the future may suddenly become worthless.
Back to top
View user's profile Send private message
Display posts from previous:   
Post new topic   Reply to topic    School of Economic Science - Study Forums Forum Index -> Economics Forum All times are GMT
Goto page Previous  1, 2
Page 2 of 2

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
You can attach files in this forum
You can download files in this forum
This forum is sponsored by the School of Economic Science for use by its members; members of its branches; members
of affiliated schools worldwide and by all other Internet users interested in the study subjects presented.
Powered by phpBB Copyright © FSES, 2007. All Rights Reserved