Resource Taxation

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= policy proposal: Resource Taxation is a form of tax levied on the use of basic natural resources, such as land, water and minerals, energy, etc., which could replace income tax and other forms of tax.


A 'good world' movement proposal:

"The basis of taxation today. In most countries tax is levied through a variety of mechanisms. These taxes are used to pay for goods and services considered necessary to protect, or enhance, the interests of the whole community. The common basis for taxation is labour and the exchange of goods. In Britain today if you have a paid job you pay a proportion of your earnings in tax through a Pay As You Earn (PAYE) system. Many commercial transactions, such as buying household goods, are also liable for tax (VAT), businesses pay tax on their profits, and shareholders on their dividends.

The present tax system discourages the creation and distribution of wealth. Taxing work and investment through income tax penalizes human effort, and acts as a disincentive to further investment. Consequently, many people feel the tax system to be unfair. It is also proving to be an inadequate way to raise public revenue.

Natural resources as the basis of taxation. Land, minerals and water are major factors in wealth creation. Since no individual had to work to create them, natural resources are, in a very real sense, gifts of nature given equally to the whole community. It is therefore suggested that the use of natural resources forms a unique and obvious basis for taxation. This very simple and fair principle has come to be known as Resource Taxation.

How does Resource Taxation work in practice? When people use land for either personal or commercial purposes, then the community is entitled to charge them for the use of these common resources. The level of these charges would be set by the community, and the income used to meet public needs. Income tax, VAT and all other forms of tax could be abolished and Resource Taxation would replace them.

What would be the benefits of Resource Taxation?

  • it would raise the incentive to work and investment
  • it would minimize land speculation and explosive rents
  • it would ensure that resources were used ecologically and economically
  • it would be fairer, simpler and cheaper to administer than the present system
  • it would enable society to fund adequate welfare, education and health for all "