An outline of the idea of land taxation

Abstract

There are foundations of land taxing presented in the paper in the context of modification of liberal system. The benefits of shifting taxes from labour and capital towards land are exposed, as well as the arguments against taxing of land. The argument being explored in the article is that if a society is to benefit the economic growth, a permanent and effective transfer of economic resources (including land and its resources as a priority) has to feature contemporary dynamism of economies. And, it is the economic system founded on the ‘law’ of land taxation that can deliver the appropriate conditions. The examples of countries who gather taxes from land are highlighted. Post-socialism economies of Eastern Europe, undergoing shocking transformation, many of whom are the European Union members, are poverty stricken even if the statistics report significant economic growth. The concern of economic transformation of post-communist countries is evoked in the light of economic system formation.