Over recent years we have seen an increasing erosion of state “welfare” while at the same time being asked to pay more sales or personal income taxes – they are rarely ever called income tax rises. In the UK they’ve gone one step further by proposing to cut tax credits from the poorest workers in society while pledging to cut income taxes for the high rate payers. However, is all the debate about income tax and tax credit the wrong one? Noam Chomsky and others debate alternative approaches to taxation, including a land value tax and taxes on landlords or natural resources. Therefore removing the need for as much tax on income. In the UK that would never be allowed as the very people who decide such things are the owners of the very land.
The video may seem a little strange to many but such an approach would all but remove the tax haven problem as assets in their place of existence would be taxed. It would also benefit those who actually work in society rather than those who have been lucky enough to inherit property.