People are more emotional than logical and the process of paying LVT would feel different to some of the other taxes it would replace. People would notice the payment more and object.
Perhaps, but one of the issues with other taxes is that the INCIDENCE of the tax
is not necessarily the person nominally responsible for payment, as
taxes are passed along.
The incidence of PAYE Income Tax and NI is
on the employer and forms part of labour costs. It is functionally
equivalent to a payroll tax. This means that employers are under
pressure to reduce labour costs by replacing workers with capital even
though it results in a worse service, or no service at all, and is, in
reality, uneconomic. Supermarket self-service checkouts are an example.
Alternatively, the employee taxes are passed on in higher prices.
It
does not stop there, because these taxes cut into employers' profits,
resulting in less being collected in other taxes including property
taxes (UBR) and Corporation Tax.
It is a similar situation with
VAT. Retailers attempt to absorb some of it in order to maintain volumes
of sales. That why cuts in VAT, which sometimes occur, are not fully
passed on in price cuts.
It is extremely difficult to establish
the true incidence of taxes. In the long run, all taxes are passed on to
landowners as they cut into rent. This was first noticed by the French
Physiocrats but is also a corollary of Ricardo's Law of Rent. The
problem this causes is that locations where business would be viable in
the absence of tax are incapable of sustaining business activity under
the present tax regime. Thus, the taxes amplify regional economic
disadvantage and are one reason why regional economic imbalance is so
intractable.
LVT would be paid as it is now, by monthly
instalments. In the case of leaseholders, the tenants' share could be
added to the ground rent and the entire tax paid over by the freeholder.
It would no more be noticed than any other regular payment made by
standing order.
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"People would notice the payment more and object."
So collect via people's PAYE codes i.e. deduct from salaries, the same as collecting the tax due on any other benefit in kind charge which is coded out, mainly cars, but could be accommodation.
https://markwadsworth.blogspot.com/2019/02/killer-arguments-against-lvt-not-452.html
That gives you automatically more winners than losers.
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