Debate Magazine

More Hilarity with the Homeys at City AM...

Posted on the 23 May 2014 by Markwadsworth @Mark_Wadsworth

The great defender of monopolies spake thusly (on the topic of fracking):
"the big flaw in the UK’s zero sum game planning system: no mechanism exists to allow the winners to pay off the losers. We need radical reform, and fast.."
Well, duh.
Of course such a mechanism exists: it's called Land Value Tax (or Domestic Rates or Business Rates).
Land which benefits from an externality (a new railway station, a fracking license etc) pays more LVT; and land which falls in value (near a noisy train track; fracking activities next door) pays less LVT.
It's the free market solution to a monopoly situation and a much better source of revenue than taxing output and employment i.e. real wealth creation.

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