During the holiday season I have been talking on email and skype and phone to various people round the world and in New Zealand. One of our challenges will be to get sufficient government revenue and introducing an adequate level of land taxes is a political challenge of immense proportions. Many are implacably opposed to land taxes, although they see the importance of the type of monetary reform we propose on this site.
It seemed to me always that those involved in the Georgist movement for land value taxes have thought they had all the answers, while those involved in monetary reform thought they had all the answers. It was in 1996 that I visited the New Economics Foundation in London and had started to understand the money issue, and during that time also spent time at the Henry George Foundation or whatever it is called in London. A few years later I noticed that Margrit Kennedy, the author of Interest and Inflation Proof Money, also had the beliefs that the two reforms should come at the same time, otherwise there are problems.
I found in 2005 when I was writing my book, that the man involved with promotion of Land Value Taxes in NZ, believed there was nothing wrong with the money system and any reform to it would be terribly damaging. So I couldn't communicate with him. I was also aware that promoting an adequate land tax would be fraught with political trouble, so I was motivated to find fellow travellers internationally and see if they had any solutions or suggestions. Land tax has to have exemptions and there are anomalies, opposition. Scottish Greens have got it through, but only as far as local authorities And what is the use of a land tax at a local authority level when a local authority can't remove income tax or GST?
In my search for these potential colleagues I discovered that the LibDems in UK had a subgroup called ALTER and Chairman Dr Tony Vickers had written an excellent paper on the political strategies needed to introduce land value taxes (LVT). I emailed him and he replied to me, copying in his executive in the process. So it was wonderful to discover Robin Smith in London and his colleague Adrian Wrigley in Brittany and talk with them about their proposal for what they call a Location Value Covenant.
I was also alerted just before Christmas to an email to many leading figures in the international Georgist movement. It suggested there was heresy in the ranks and people should stick to the Georgist dogma, (yes it used the words heresy and dogma.) This flushed out more people, from US particularly and from the Occupy movement who were convinced on both issues so I started an ongoing skype chat (no audio, but easier to work with than emails) with those people. We paused for breath every now and then while we had one-to-one skype chats or small audio groups as we came to understand what they were talking about.
I can't pretend we have completely arrived at a solution, because we are still in the process of collaborating on a document with the new proposal and what it can do. But I can say it is looking at private debt, at mortgages, because it is mortgages where the two issues intersect. I can also say I am very excited and there are others round the world who are equally keyed up. It is taking a bit of time to get this to a stage where the proposal is easily understood and clear and feasible. So please be patient, and if you want to talk about it, do give me a call. (Skype callers please post a message first!)