Currently, nine-tenths of annual taxes are collected from output, employment and profits and only one-tenth is from land and buildings.
Young People’s Party proposal is to have just have two simple taxes.
Half of revenues would come from a flat income tax of 20% and the other half would be from Land Value Tax on residential and commercial land.
Stealth taxes on earnings such as Value Added Tax, National Insurance and higher rate income tax would be abolished and all existing taxes on land and buildings such as Council Tax, Business Rates and Stamp Duty Land Tax would be replaced with Land Value Tax.
The total revenues under our proposals would be similar to current total revenues, but working households would save thousands or even tens of thousands of pounds every year in tax.
The ‘Compare your tax bill’ calculator enables you to see how much tax your household would save every year.