Lost Value Tax and the Priniciple of Harmonic Taxation

Lost Value Tax and the Principle of Harmonic Taxation

When grassland is over grazed or forests are destroyed it is a cost to the whole of humanity. The value of the Commons is immeasurable but that is not to say that such shared value is impossible to recognize.

Planetary citizenship dictates we should protect the environmental Commons . Our proposal is that this principle should be extended to include the Commons as a whole economically, socially and culturally.

‘The polluter pays’ is a simple equitable, ethical and ecological principle that needs to be applied to protect the whole of our common wealth.

The perfect principle in terms of a legal penalty for pollution of any kind – whether environmental, social, economic or cultural – should be assessed in some respect as ‘Lost Value’ – to the victims and to the community. Consequently in addition to Value Added Tax we propose consideration of how “Lost Value Tax ” can work.

It has always seemed an anomaly that in the UK that purchase or consumption tax is called ‘Value Added Tax’ when in reality it is nothing to do with value creation. But the principle here is an important one. Adding Value for the community, creating Shared Value should be rewarded not penalized and this too needs to be a matter for reflection as to how practical tax breaks or other benefits can reward those who add value to the Commons for sake of the community by creating shared value.

Establishing such mechanisms is an important part of transforming warrior capitalism into Common Wealth Capitalism. In practice this principle needs to protect the right to trade but not to exploit or unfairly benefit by abusing the Commons. A simple example is where a supermarket’s shareholders are in effect subsidised by Council Tax payers for dealing with packaging waste created by the supermarkets themselves.

We believe that Value Added Tax needs to be partnered by Lost Value Tax that reflects the principle that the polluter pays. So for example News Corp International which undermined the British media through illegal and immoral intrusion to create salacious story-lines which have undermined the public’s faith in a free press should be charged Lost Value Tax as well as VAT for the years they operated illegal phone hacking. The same should be true of the banks for their actions and over the time that they forced the UK government to pay out ¬£145billion (interest free) to bail them out with the same amount of money that the whole of Europe has to date put into rescuing Greece.

The principles of harmonic taxation are first that the polluter pays (surely even bankers can understand that) and secondly that those who create shared value should be rewarded in some way.

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