fredag 4 april 2008

Capital Gains Tax rise avoided

This morning's news was full of indignation about the fat cats who have taken action to avoid the increases in Capital Gains Tax, which start with the new financial year after 5 April.

But if people have worked hard and built up the value of their businesses, what right does the government have to any of the fruits of their hard work? No right at all, I would suggest.

If, on the other hand, the increased value is primarily an increase in the land value element of their business assets, then that growth has come about not through any effort by the entrepreneur but through the presence and activities of the community. By rights, that value does indeed belong to the community that has created it.

However, without a competent system of land value taxation in place, that unearned value stays with the owner, leaving the government short of funds, and because politicians and their advisors seem unable to understand what is going on here, they resort to grabbing the products of people's initiative, intelligence and hard work.

There is something wrong here, is there not? And surely it is not the fat cats who should be blamed but those who argue for and perpetuate the present tax system?

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