Why this is needed:
The current Income Tax System is a harvesting system designed to keep the majority in or close to poverty. Originally, most Income Tax came about to pay for the endless wars of the late 19th and early 20th century. Today, income taxes are collected to pay government debts accrued from pointless wars and irresponsible spending. It is a myth that income taxes pay for public services. They do not; they are a tribute to the Crown. The banking elite bankrupted most countries by the 1930s, turned them into corporations, set up the Federal Reserve, IRS, Bank of International Settlements and expanded the Birth Certificate system of debt slavery. All people are born as debtors, chattel and are used as collateral underpinning the debt bonds issued by banks to finance government spending. With compound interest these debts can never be discharged, committing every person to a lifetime of debt servitude and taxes. The IRS is an Admiralty institution based in Puerto Rico, collecting taxes for the Crown via the Federal Reserve. Tax agencies in most countries are merely debt collection agencies for the Crown. There are multiple other taxes as well as income tax, for example property tax, sales tax, goods and services tax, customs and excise tax. Then there are multiple licensing fees, fines and inflation, all of which are hidden taxes. This system of taxation penalizes productivity. The value people produce is taxed, improvements to the land are taxed which forces businesses to struggle, increases prices and pushes people into poverty.
This system also concentrates land ownership into fewer private hands, as people default on mortgage payments when the cost of living increases, due to increased taxation and interest rates. The wealthy can then buy up land and property as ownership defaults to the banks. We have seen lots of wealth creation in the 20th to 21st centuries; however, this progress has concentrated 90% of the wealth into 1% of the population, leaving the vast majority at or near deep poverty. This level of poverty creates physical and mental health problems, drug and other addictions, crime, starvation and untold misery. The costs to try to manage the negative outcomes of this level of poverty globally are astronomical and can no longer be sustained, leading to further breakdowns of society. Nothing will change if we continue with the current systems of taxation. Imagine a world where personal income is free of taxation, and any other taxes are collected and used locally rather than siphoned to foreign corporations for the benefit of self-styled elites. Revenue agencies can be run at the local community level, with a real Treasury department operated transparently for and by the people and accountable to the people. If we implement a flat tax from 3% up to 15%, we can abolish all income tax, tax on pensions, delete licenses and fees currently in existence, and all other taxes with no tax on necessities such as food, water or any other products and services. A healthcare wage deduction of about 12% can be imposed to enable free healthcare for all. This document will introduce the land value flat tax, why it can solve many problems by reducing the tax burden on the people and free up resources so all can benefit equally. This will make necessities affordable and reward hard work, creativity and innovation.
In the 19th Century, Henry George wrote a book called Poverty & Progress. In the book he suggests that the root cause of poverty derives from private land ownership and taxation of work and goods produced. He also shows how taxing improvements to the land, such as buildings and crops, lead to deeper debt cycles, land speculation and the concentration of private land ownership into fewer hands.
By defining the root causes of poverty, Henry George proposed a very simple and elegant solution:
- End private ownership of land.
- Lease land and right of use for a set term of 99 years, or less per individual circumstances.
- Tax the value of the land, a flat land value tax.
- Eliminate all other taxes.
- No tax for productivity, buildings, manufactured goods or what is produced from the land.
- Manage revenues from the land tax at the local level, investing in projects and needs for local communities, with transparency and accountability.
Positive Outcomes of a Land Value Tax:
- The more land an individual has, the more tax they pay. Less land, less tax.
- This will end land speculation as idle land will become an expense, so naturally, individuals will be compensated for only leasing the land they can use productively.
- Land values will decrease as more land becomes available, so land tax/rent will become more affordable, enabling more people to rent land or a home. Over time this could solve the homeless crisis as everyone will be able to afford a home. It will also end “market value” that drives up land prices beyond the reach of most people.
- Prices of goods and services will drop to true market value and reflect the true cost. Lower prices eliminate inflation, a hidden tax.
- As prices drop, taxes decrease, people will keep more of their income, meaning they can afford food, clothing, health care costs and the necessities of life.
- Crime will decrease over time as people are lifted out of poverty and the 5 basic needs are affordable. This will reduce costs to pay for crime prevention, policing and prisons.
- Health will improve, leading to lower health care costs, as well as reduced addiction problems as people can afford to live a more fulfilling life.
- With the reduction of the above costs, more of the land value taxes collected can be invested in community projects, infrastructure and services.
- Hard work and productivity will be incentivized as people get to keep 100% of the rewards of their effort and creativity.
It will take time to implement, but this is a foundation for a system that better serves humanity.
All of humanity gains as wealth will be distributed more equally, and all can gain access to the 5 necessities of life with this new system.
All humanity benefits as food, shelter, work, goods and services become more affordable and available for all people. Crime will decrease, freeing up resources to invest in projects that will be beneficial for humanity. Health outcomes will improve leading to less reliance on expensive pharmaceuticals and medical practices. Military conflicts will decrease as wealth distribution becomes more balanced between nations. This will free up immense military budgets for positive investments. There are many more benefits to society that will flow from this solution.