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New Irish Programme for Government Includes a Site Value Tax

See below positive mention of Site Value Tax (SVT)  in the Programme for Government agreed by Fine Gael and Labour Party negotiators.  Congratulations to all our Steering Group and supporters who have worked so hard for this day!

Our proposals for an annual SVT already takes into account homeowners in mortgage arrears and it already is geared to providing the bulk of local government funding.   Smart taxes is convinced that an annual SVT on all developed residential units and all zoned sites is a good start.  The second step, easily achievable is to replace commercial rates with the SVT.  Indeed this might even be possible for the outset with sufficient resources and priority as there is already a full property valuation in existence.  The third step is more problematic; that is a full land value tax (LVT) covering all land not already covered by the SVT.  The LVT should be based on the productive value of agricultural and forestry land as indicated by its rental value less its value as a commons or public good.  Smart Taxes is developign research briefs to take this development forward.  Watch this website for our progress..

As part of our fiscal strategy the new Government will:
• Keep the corporate tax rate at 12.5%; • Maintain the current rates of income tax together with bands and credits. We will not
increase the top marginal rates of taxes on income. We will reduce, cap or abolish property tax reliefs and other tax shelters which benefit very high income earners. We will also ensure the implementation of a minimum effective tax rate of 30% for very high earners;
• Consider, arising from the previous Government’s deal with the IMF, various options for a site valuation tax. Any site valuation tax must take into account the significant number of households in mortgage distress and provide local government with a reliable stream of revenue;
• We will limit the top rate of VAT to 23%; • There will be no increase in the standard 10.75% rate of employers PRSI; • We will review the Universal Social Charge; • We will ensure that tax exiles make a fair contribution to the Exchequer; • Re-prioritise capital funding for smaller projects that deal with specific immediate
problems. Smaller projects are more labour intensive and more likely to be carried out by local contractors increasing short-run domestic economic impact. Investment priorities will include education, health and science and technology;
Government for National Recovery 2011-2016
• Undertake a full review of the Hunt and OECD reports into third level funding before end of 2011. Our goal is to introduce a funding system that will provide third level institutions with reliable funding but does not impact access for students;
• Bring in a range of measures to tackle the problem of welfare fraud. As part of this we will create a new “one-stop shop” Payments and Entitlements Service to process all major welfare and other entitlements;
• Conduct a Comprehensive Spending Review to examine all areas of public spending and to assess effectiveness of spending programmes and value for company;
• Establish a Tax and Social Welfare Commission to examine entitlements of self employed and the elimination of disincentives to employment.

(Download the full Fine Gael/Labour Party Programme for Government)

Posted in Land Taxation, News, Site Value Tax.

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