Tax havens – one of many reasons for taxing the quintessential on-shore asset
The documents leaked from Mossack Fonseca provide indisputable proof that the UK’s tax system is not fit for purpose and there needs to be a fundamental shift in what is being taxed to prevent the rich and powerful from avoiding paying taxes.
Dave Wetzel, President of the Labour Land Campaign said, “This leak only confirms what we already knew about the UK tax regime: those who are most able to pay avoid paying whilst workers and small businesses are
left to fund public services.”
One reason why the Labour Land Campaign (LLC) has campaigned for years for land value taxation is because land is the quintessential “on-shore” asset and a tax on it is therefore unavoidable.
Dave Wetzel went on, “It is ironic that so much of the wealth squirrelled away off-shore actually derives from the increased land values that are generated by public services paid for by UK taxpayers. And yet our tax system helps the richest and the unscrupulous avoid contributing to the cost of these public services that they are the very ones to benefit the most from.”
More fundamentally, taxing the unearned incomes land owners siphon out of the real economy will make it possible to eliminate all the dead weight losses associated with our current economically inefficient taxes which variously inhibit work, business, enterprise, trade and investment. Changing what is taxed will make our fiscal system fairer and more economically efficient to the benefit of society as a whole and to the profit of the vast majority of its citizens.
The Labour Land Campaign is a voluntary organisation working for land reform. It advocates a fairer distribution of land wealth through a Land Value Tax.
For more information see www.labourland.org
URL for posting on Twitter: