SIR – Following Thursday’s rate cut by the ECB, Herman Von Rompuy, president of the European Council, said that leaders must take immediate steps to boost growth and create jobs (Business, May 3). Like what, exactly?
I suggest tax reform. We need to bring vacant and under-used land into production, and the best way to get spades in the ground and reduce unemployment is to cut taxes on wages, production and sales and instead levy a tax on the annual rental value of land. Besides encouraging the construction industry, the immediate benefits of this reform will be that everyone will have more money to spend and the resulting increase in demand for goods and services will provide opportunities for new business start-ups and create more jobs.
If we want to break out of the austerity cycle we must take a fresh approach to taxation.
Michael J Hawes