I resist LVT because as I get older I may not be able to earn enough to pay my taxes and will get kicked off my land and home before I die.
Winston Churchill called that the "Poor Widow bogey". That has been dunbunked for over 100 years. The poor widow livinga very large house on valuabel land.
Allusion is typically made to the "poor widow"
1. Who, on a fixed income of a pension and/or social security is compelled
to sell her home in which she lived for years and where she hoped to spend
her remaining days.
2. Although pundits and politicians are often hard put to provide an
instance in which this has happened, it makes for excellent copy, for what
greater case of heartlessness can be offered for relief of property taxes!
Priceless logic. The more that people want something, the less they should have to pay for it? Isn't one of the basic rules of free markets that people are prepared to pay more for things which are of value to them; and isn't there a behavioural rule that people value things more if they have to pay for them?
A childless Poor Widow could be exempted anyway (her estate reverts to the state) and if she has, er, family, couldn't they step up the oche? Or is the idea that 'everybody else' chips in a bit more tax to keep these "families" in the style to which they have become accustomed?
What happens now? If you can't afford to live somwhere you move to somwhere you can afford. LVT has exemptions for various reasons. Under LVT, an old widow in a massive valuable house can defer payment until death or sale of property.
As regards the poor widow neighbour. It certainly is her fault if she has "little cash", it's called "not saving up while you are working". And if she wanted, she could be sitting on a huge great pile of cash locked up in the land under her feet, so this sort of poverty is entirely self-inflicted.
What LVT would do is encourage Poor Widows in large houses to do the economically rational thing and down size a bit to somewhere costing "only" far less, freeing up huge great piles of cash for them to really enjoy their last few years.
And, if we are that worried presumably we could have an old lady exemption that might be slowly phased out? The older generation cannot go on holding the younger generation hostage and demanding that the younger generation pay for them because it was not cool to save in the 60s!
Why shouldn't the Poor Widow, who has struck property gold and won the lottery of life and who can bank her winnings any time and still afford somewhere nice with enough money left over to pay the tax for the rest of her life, pay more than a genuinely Poor Widow (whose husband was a coal
miner and died of lung disease twenty years ago etc) who still lives in a small house that's barely beaten inflation since the 1940s? You can save a lot of money by trading down from a swanky home into a suitable place.
A more sophisticated Poll Tax would be:
a) set in proportion to benefits received by owner/occupier(s) of any
particular house
b) be able to raise huge amounts of revenue to replace lots of other taxes
and pay for a Citizen's Income (which acts like a personal allowance against
your tax bill)
The good news is, LVT retains the two big advantages above of Poll Tax - it's not directly related to incomes (any more than the value of your car is related to your income) and it's nice and simple to assess and collect.