12096Re: Why don't companies promote LVT
- Nov 1, 2011--- In LandCafe@yahoogroups.com, "roy_langston1" <roy_langston1@...> wrote:
>Roy, "productive companies are exquisitely vulnerable to economic ostracism". I don't quite get that.
> --- In LandCafe@yahoogroups.com, "John"
> <burns-john@> wrote:
> > My economics degree Romanian girl friend said
> > "if LVT with no income and corporation tax is
> > such a good thing why don't companies push for
> > it". She added, "I don't see them doing so".
> Because company directors are mostly rich,
> privileged landowners, and the social circles
> they move in consist mainly of rich, privileged
> landowners. Productive companies are exquisitely
> vulnerable to economic ostracism, and their owners
> and officers are vulnerable to social ostracism.
> Even if their owners understand the benefits of
> LVT, they can't take the chance of offending the
> owners of the companies they do business with.
> Rent seekers, OTOH, don't have to worry about
> losing business to the competition.
Less or zero Corporation tax would have companies crying out for LVT for sure. They are not crying out. Many large companies do have people who understand matter including LVT.
The UK does have taxes on land to a watered down extent. Even companies pay a form of LVT in Business rates, although only occupied premises qualify.
Mark Wadsworth on the recent proposal for LVT by Boles, a Tory MP.
"(1) Business Rates is the tax that comes closest to LVT, as it is an annual tax based on the annual rental value of commercial land and buildings (payable whether occupied or not, by and large), but
a) it does not differentiate between the buildings and the site itself instead of just taxing the site rental value and
b) is NOT applied to derelict or undeveloped sites, so that in itself discourages development (although when Labour reduced exemptions for empty premises in 2008 or thereabouts. occupancy rates of existing buildings went up, as we would expect)."
Maybe more taxation on Business Rates and less Corporation tax would be the thin edge of the wedge and encourage companies.
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