I suggested a few weeks ago that a land value tax would be preferable to any other tax system in terms of both economic efficiency and fairness. So, I was pleased to see the New Zealand Government’s tax working group come out in favour of a land tax over a capital gains tax (hat tip: Blaise or Eric via Google Reader).
I would prefer a land tax as a complete replacement for income and consumption taxes, an option certainly not on the table; and I share Eric’s concern that adding another tax will increase the total tax take. Still, it’s nice to see an idea which is so obviously good from a standard welfare economics perspective being taken seriously.
Working paper from Andrew Coleman and Arthur Grimes here.