Debate Magazine

Killer Arguments Against LVT, Not (345)

Posted on the 03 November 2014 by Markwadsworth @Mark_Wadsworth

Dinero, in the comments to #344:
If you want a Tax that captures some of the rental value of UK land how about a tax on banks' motgage portfolios.
It would the most painless. There is something similar, the UK Bank balance sheet Levy.

This is from the "Please go after somebody bigger than me" school of KLNs.
And as it happens, beefing up the bank asset tax to raise £30 billion or so is already in the YPP manifesto. That's a good idea with or without LVT, and a far better way of taxing banks than corporation tax or PAYE as it only taxes the monopoly/rental element of banking (i.e. 'splitting the zero').
But the total rental value of UK residential land is £200 billion, a bank asset tax would barely make a dent in that. Conceptually, the banking monopoly and the land monopoly are two slightly different things anyway.


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