This tax could help land the unemployed jobs
JOHN Kane-Berman of the SA Institute of Race Relations has pointed out that the nation’s most important issue is to “make economic growth the overriding priority”.
How this is to be done seems to have eluded the country’s leaders, the government, and most economists and commentators.
Few, if any, economists will ever point to the elephant in the tax room – the one component of taxation that is completely ignored. Yet, if collected, it has the potential to exceed the total of all the other taxes. It is land value taxation (LVT).
LVT is no longer taught at universities and has been ignored for the better part of a century.
I have had personal experience of this. All the great economists since Adam Smith have highlighted LVT as the main source of government revenue, but the rich, understandably, have sought to keep knowledge of this tax quiet as they would have to pay most of it.
There are a number of Asian countries that use LVT as their main source of revenue, including Singapore, Hong Kong, Taiwan and Japan.
The main advantage of LVT is it is impossible to avoid or evade, and it shifts the burden of taxation to the rich who can most afford to pay this tax.
An integral part of this solution is the elimination of VAT, and a progressive reduction in income tax and company taxes/red tape, as LVT is progressively introduced (over 10 years).
Also among the benefits is it reduces unemployment, and is friendly to the poor.
I would also suggest the government introduces legislation that will encourage firms to employ people under 30 years of age, and not tax them for two years.
It has been proved that young people who have a job for a year will probably work for their whole lives.
The government should seek to increase taxes, and encourage richer people and firms to actively employ more people. Edenvale