Gavin R. Putland

Trickle Up Economics: The Report

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Assessing the impact of privatized land rent on economic growth by Gavin R. Putland   Executive Summary This report investigates the relationship of the land rent share of GDP with economic growth. Since the Second World War, there has been a negative correlation between Australia’s total land price and the rate of economic growth. The […]

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The compulsory retirement of home ownership in Australia

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… A Turnbull victory will entrench the bidding advantage of investors over owner-occupants, even for established homes. The age of home ownership as we know it is coming to an end. The age of investor hegemony is here. From now on, for a typical first home buyer, the only way to beat the investors will […]

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Schroedinger’s negative-gearing investor

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SQM Research contradicts itself on Labor’s negative-gearing policy … So we are supposed to believe that, on the one hand, investors will be so spooked by the non-transferability of negative gearing that investment in new homes will fall, in spite of the continued allowance of negative gearing for new homes but not established homes; and […]

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REIA contradicts itself on negative-gearing policy (updated)

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Further to my post of 21 May, I note that the Real Estate Institute of Australia (REIA) is now making two contradictory claims on Labor’s negative-gearing policy. In mid May, the REIA launched its campaign claiming that if negative gearing for future purchasers is allowed only for new homes, rents will rise, because: (a) investors, including investors […]

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Don’t get fined $30,000 for moving house!

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“A citizen can hardly distinguish between a tax and a fine,” wrote G.K. Chesterton, “except that the fine is generally much lighter.” In Victoria, for example, the stamp duty payable on the purchase of a $600,000 house-land package (below the median price for Melbourne) is more than $30,000 — or about 150 times the fine for […]

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Frank Ramsey was verballed

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Frank Ramsey formally studied mathematics but diversified into philosophy and economics. Among economists he is famous for proving that if the tax system is to raise a given revenue with minimum deadweight, each commodity should be taxed in inverse proportion to its price-elasticity of demand (Ramsey, 1927). That is unfortunate because the cited paper does […]

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A Georgist explanation of ‘fiscal devaluation’

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Payroll tax is a reverse tariff: an inland payroll tax feeds into prices of locally produced goods and services, including those intended for export, but exempts imported goods and services up to the point of importation. In contrast, a Value-Added Tax (such as Australia’s GST) is border-adjusted so that it captures the value added to […]

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How land-value windfalls could pay for the Doncaster railway

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The Herald Sun reports research by PRD Nationwide showing that on average, across all Melbourne suburbs, the presence of a railway station in a suburb adds about $48,000 to the value of the median “house” in the suburb. This average rises to $59,500 for the northern suburbs or $105,000 for the eastern suburbs. Of course the […]

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If you run a business on rented premises and aren’t a full-on Georgist, you need your head read!

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“When you’ve paid your rent, you’ve paid your tax.” “So what’s a Georgist?” you ask. A Georgist (or at least a “full-on” Georgist) is someone who says there should be no taxes except those on land values, payable by the owners — and is keen to explain that “land” doesn’t include buildings. (It does include […]

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Directly or indirectly, we all pay income tax

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The mascot of the anti-land-tax campaign is the “poor widow” — you know, the one who will allegedly be forced out of her home because she doesn’t have the cash flow to pay the tax on the astronomical value of the land under her house, and who can’t be compensated by cuts in income tax because […]

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