On 15/03/2012 23:18, Doctor Drivel wrote:

THE PROBLEM

Three million children today are living in poverty. Successions of
governments, of different parties, can't change this due to the tax
system. Children born to the poorest families suffer little or no social
mobility.

Are politicians to blame?

The biggest scam in history was instigated on the people centuries ago
by the Lords, Barons and Knights of the land. Governments used the tax
system to milk the poor.

Why did they do it?

To enrich the people who own land. It is operated by all democratic
governments around the world. The biggest winners are those who own land
or homes in the best locations.

People who rent pay rent to landlords and taxes to the government.
People who rent pay taxes to fund the service that they receive: police,
rail, roads, army, etc. That sounds fair. They pay for what they receive.

Britain's top earners pay on average £1.25 million in taxes in their
lifetime. The people who rent their homes are generally in the lowest
income bracket. Over their working lives the poor pay over £0.25 million
in taxes. The rich on average pay 5 times more in taxes.

That sounds fair. Doesn't it?

Income tax is the more you earn, the more you pay. Called Progressive
taxes. Progressive taxes has exactly the opposite effect.

Rich people complain that they pay a lot of money to the government.
But, the government pays it all back to them.

How do they do this?

Governments spend our tax money on infrastructure, such as: Schools
Universities Hospitals Rail networks Roads This infrastructure raises
the productivity of the economy resulting in economic growth. Because of
the way the market economy works, those economic gains are crystallised
as land values. Then these gains surface as windfalls or capital gains
in the property market.

Those capital gains are not shared out equally amongst all of us,
taxpayers who rent their homes for example, are excluded.

The windfalls are pocketed by people who own land. The rises in property
values more than offsets the taxes they pay into the public purse. Then
who pays for the services the rich people use? The families on the
lowest incomes.

Every increase in house value for top earners offsets any tax they
contribute. During boom times it's possible to claw back a lifetimes
taxes in just three years. Meanwhile...the lowest earners and those who
pay rent, pay more overall.

Families on the lowest incomes subsidise the lives of the rich.

Is that fair?

There is only one way to make the tax system fair. Parliament has to
tell the taxman to stop collecting taxes from people's wages.

We need a kind of tax reform that Winston Churchill and Lloyd George
nearly introduced in Parliament 100 years ago. But, the landlords
blocked them.

The only war Winston Churchill lost was the war against the British
landlords. If we cancel the tax on people's wages, how do we pay for
public services? By levying a charge on the value of land. People who
live in valuable locations will pay much more than those who live in
less expensive properties. That's fair. It also happens to be the most
efficient way to fund the service we all share in common.

THE SOLUTION

There is a simple solution to this injustice.

We should place the cost of public services on the values of land.
Owners with houses in valuable locations would pay more than those who
rent their homes. Owners with houses in valuable locations wouldn't be
able to claw back their taxes. That way everybody pays for the services
they receive and we are all treated as equals



Are you JohnLVT? Or are you just plagiarizing something that he has
written? It is customary to provide references when quoting.

http://www.ronpaulforums.com/showthr...=1#post4269820