Resource Rentals explained
What we commonly term ‘rent’ is made up of two distinct elements:
First, there is rent for the buildings and improvements and this must go to the person who owns them. Secondly, there is the rent of the land (natural resources) and this should go to the community because:
1. community funds the government spending which pays for improved amenities such as the roads, public transport, hospitals, etc.
2. the natural increase of population places additional demands on a unique resource - land
You will notice that both (1) + (2) are natural forces of a community. Importantly, both act to increase land values. Why should the community’s efforts benefit those privileged enough to own large tracts of land? It’s a guaranteed winner for those in the know.
If government were to claim the part of ‘rent’ created by the community, taxation could be done away with and the average person would be far more prosperous. Keep reading to see why Albert Einstein, Mark Twain and Alfred Deakin all saw this as essential to achieve our true (economic) freedom.
RRR advocates the elimination of all taxes and their replacement with resource rentals. If everybody in New Zealand paid around 10% of the value of the resources which they controlled to the Government then all other taxes would be unnecessary. This would cover all resources such as land, water, oil, coal, and the electromagnetic spectrum. The resource rental system with which we are most familiar are local government rates.
For the average person, if the land value of your property is $250,000, the occupants would have a combined tax bill of $25,000. You would write one cheque and then be done with taxation for another year.
No longer would we require PAYE Income Tax, no GST, no Petrol Tax, no Provisional Tax, no FBT, no Customs Duties or tariffs, no FID, no BADT, no excise, no payroll tax, no other taxes at all.
With these taxes removed, prices of general goods and services would fall by more than 50%. Who could complain of a tax bill of $12,500 each for you and your partner plus a 50% reduction in the cost of living?
Who wins and who loses?
Our proposal is a tax on Rent. If you live off other people by collecting rent then you will be worse off. If you work for a living you will be better off. It’s that simple.
By the way, you cannot escape paying resource rentals - the only choice you have is who you pay them to. If you pay them to the community then other taxes are not needed. If the wealthy - who now own our country - collect them then they will keep getting richer and we will continue to have poverty and unemployment.