|Thursday, January 12, 2012||(Comment)|
Replacing property taxes and payroll tax
The revenue from payroll tax, property transfer duty, insurance duty... and the existing land tax could be replaced by a broad-based “land tax”, with no exemptions or thresholds, at a flat rate of about 1.5% per annum...
Alternatively, the same revenue could be replaced by a property-vendor duty levied on the real increase in the land value since the last sale, at a rate of about 45%...
Either option would (i) create jobs by reducing taxation of labour and its products, (ii) encourage construction by reducing taxation of buildings, and (iii) make new infrastructure pay for itself through the ensuing uplifts in land values.
Read the full submission (State Tax Review, Tasmania).
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