Land Tax Changes “Shameful”
Proposed cuts to Victoria’s land taxes will be vigorously opposed by an economics lobby group who plan to target both the government and opposition in marginal seats on the issue.
Spokesperson for Prosper Australia, Mr. Lev Lafayette, said it was “gross negligence” to continue to tax productive activity and investment whilst encouraging speculation in holding resources.
“Economists from around the world are almost unanimous that it is much better to derive public revenue from site rental value rather than labour or capital investment”, Mr. Lafayette said.
“However Victorian politicians ignore this advice and the accumulated evidence in favour of preying on the ignorance of the electorate whilst accepting donations by organisations that have a vested interest in high land prices and reduced home affordability.”
The Property Council of Australia is once such organisation that has advocated reducing land taxes. Unlike other taxes which increase the price of a good or service, land tax would reduce the price of land as it is in fixed supply and available ‘by nature’.
In 2003/04 the Property Council of Australia donated $7,500 to the Australian Labor Party and in 2002/03 they donated $6,000 to the Liberal Party.
“Both John Brumby and Ted Baillieu ought to be ashamed of themselves”, Mr. Lafayette concluded. “Public leaders ought to act in the best interests of the state; not for short-term political gain”.
Prosper Australia will be holding public meetings across Melbourne in the lead-up to the State election and will be inviting politicians who support tax relief for working people and good investors.
