The New Economic Foundation NEF, based in London has compiled a new “put-it-all-together” vision ” The Great Transition” for a sustainable society and economy. Inevitably, Smart Taxes might disagree with bits – such as the 67% inheritance tax. We think something like the Irish capital Acquisition Tax is better model to start from. But on the whole a brave and useful attempt even if short of mechanics and detail. The best bit is its strong and clear support for land value taxes as the main way of raising revenue for national spending.
Second, asset inequality at the individual level would be primarily addressed through the inheritance-tax-funded Citizens’ Endowment described in the Great Redistribution, but would then be held in check through a progressive capital gains tax, complemented with a national land value tax87 to create a regional inequality reducing mechanism: if some areas grew more prosperous than others, this would be reflected in higher land values, generating higher tax revenues. Land in less prosperous areas, in contrast, would have lower values and so attract lower tax rates, providing incentives for investment and economic regeneration. (link to download)
