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For instance, the design of stamp duty can discourage movement in the housing market. It creates a financial burden for people wanting to relocate even when property values remain the same. Economists across the political spectrum advocate for replacing stamp duty with a land value tax, arguing that it would encourage the efficient use of real estate and stimulate economic growth.
Politically Unpopular Yet Essential Changes
Needle identifies a contradiction within tax reform discussions—while there’s often talk of taxing the wealthy to improve public services, evidence suggests that most funds come from the middle class. He points out that countries with stronger welfare states collect more tax not primarily from the wealthy but from a broader base.