The proper function of the property industry is to keep the productive economy housed as cheaply as possible, so that investment in future production is not crowded out by the cost of occupying space — that is, by the cost of…
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 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…
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…
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…
“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…
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…
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…
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…
“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…