Skip to main content

Tax evolution

In order to progress from the current state of social injustice and inequality that is maintained by contemporary systems of taxation, it is time for taxes to evolve.

Innovative tax reform can prevent a number of problems that arise in the use of fiscal policy. A shift in the tax burden away from capital and labour and toward capturing unearned income that results from increases in the value of land would have stabilising effects preventing house price bubbles, and would not be inflationary as some tax reform can be. It also avoids the problems of attempting to stimulate the economy through government borrowing or cuts in government services, as the overall tax intake does not have to be reduced, only the burden of tax redistributed.

Evolved taxes promote capturing unearned income from land whilst providing incentives to labour and capital through potential reductions in taxation where human effort is involved. This policy can be applied at the macro level or at the local level. For example, a shift in the burden of a regressive tax such VAT at the national level, or a shift from a regressive tax such Council Tax to one that only taxes unearned incomes gained from increases in the value of land.

Within the boundaries of the mainstream political spectrum (and to some extent outside of these) the capture of increases in the value of land for public use is an apolitical policy, but radical in the sense of being an innovative solution to seemingly intractable social and economic problems.

Tax evolution would create a more effective, efficient and equitable system that is far better suited to the physical and social environment of today. Pushing for tax evolution is necessary, as current systems of taxation are outdated and inequitable creating an unacceptable burden on society.

Spread the word:

Donate Today

Become a Supporter of the Henry George Foundation

To Gift Aid your donation, please request a Gift Aid Declaration Form >

Land and Liberty Logo
Land & Liberty magazine is a publication of The Henry George Foundation.