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B921 - Alternative Tax (Amendment) Bill 2016 Watch

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    (Original post by James Milibanter)
    you prick
    As shadow chancellor it is my job to hold you to account
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    (Original post by The Financier)
    As shadow chancellor it is my job to hold you to account
    Good thing you didn't see the original post before I edited it
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    (Original post by James Milibanter)
    Good thing you didn't see the original post before I edited it
    Calm down - there really is no need to get fractious.
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    (Original post by Quamquam123)
    Calm down - there really is no need to get fractious.
    Don't worry, it's just banter.
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    (Original post by James Milibanter)
    Don't worry, it's just banter.
    Gr8 banter! 😆
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    (Original post by James Milibanter)
    The definition will be changed.

    A few examples will show why a tax on land values cannot be passed on by the taxpayer to anybody else.

    > Consider two shopkeepers, both selling the same kind of goods in the same town. One has a shop in a side street where land values are low, and therefore his Ground Rent Tax is low.The other has a shop in the High Street where land values are high, and therefore his Ground Rent Tax is high. If the second shopkeeper tried to raise his prices to pay the Ground Rent Tax, his customers would go to the side street shop instead of his. The reason shop-keepers seek High Street sites is not that they expect to be able to charge more for their goods, but that they expect to sell more of them.

    > Consider a farm worked by a tenant farmer who hires it from a land-owner on an annual tenancy. Suppose that the land-owner is now charged LVT on the value of the site of the farm - not the buildings or other improvements, of course, but the site alone. Could he demand more rent from the tenant farmer?The tenant already pays as much rent as the land-owner can make him pay. If the land-owner tries to charge him any more, to pay the tax, the tenant will either move to a different land-owner where the rent is lower, buy a freehold farm, or go out of business. The land-owner knows this, and it is that knowledge which determines the rent. So the rent cannot be increased, and the land-owner must pay the tax himself.

    > Consider two manufacturers making similar goods. One has a factory on an expensive site, the other owns a factory on a cheap site. Can the first manufacturer raise his prices to pay for LVT? Again, plainly not. What determines the price he can charge is the play of competition, not the value of the site from which he is producing goods.x
    Ohhhh, so instead you want to increase unemployment by forcing people out of business because they cannot operate in as competitive a manner when they may already be in a worse position by being on more expensive land, and additionally play into the hands of big business by forcing out of business the smaller independent businesses that have to rent their land whilst big business owns theirs outright. We're already seeing the death of the high street due to rents being so high, all this does is amplify the issue.

    It would also likely be that optimal pricing would simply dictate that the cheaper manufacturer puts their prices up too and it's best for the profits to keep the competition.
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