Category: Essentials of Economics: Ch 12

In the Guardian article linked to below, Ashley Seager argues that the only way to reduce the extent of social exclusion is to tax the main asset of a large proportion of the population; their house. He argues that the massive increases in land values that have taken place with rising house prices have increased divisions in society and that a land tax is required to address this. It may be interesting to consider this issue along with News Item 4 about global wealth distribution.

A land tax is 200 years overdue Guardian (8/1/07)

Questions

1. Explain what is meant by a land tax and suggest different ways that this could be levied.
2. Discuss the likely impact of a land tax, as proposed by Ashley Seager, on the major economic targets.
3. Analyse possible alternative policies to reduce the levels of exclusion in UK society.