Hot on the heals of high end property agents Knight Frank's report denigrating the Mansion Tax, as widely reported in the national press, economist Nic Tideman, writing for the Journal of Economic Literature has launch a scathing repost.
Titled "Knight Frank's Proposal to End Distinctions Amoung Factors of Production and Their Objection to the Mansion Tax" , Tideman shows how the failure to distinguish the moral basis for property rights, inexorably leads to the rejection that land rents are a just source of public revenue.
The abstract is as follows.
"Knight Frank claimed that there are no economically interesting distinctions among factors of production, and they also strongly opposed Vince Cable's proposal to implement a Mansion Tax. We locate and examine the Mansion Tax in Knight’s framework of property rights and argue that Knight ignored an inefficiency in the original appropriation of land that occurs when competition is used to assign property rights in land. This inefficiency is visible only if land and capital are conceptually separated"
The full article can be read here
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