A Critique of The Effects of Taxation on Sustainable Development by Greig McGill

University Degree Business and Administrative studies

A Critique of ‘The Effects of Taxation on Sustainable Development’ by Greig McGill

Research methods is a new terminology any undergraduate could come across and wonder how it might enhance the knowledge and prepare ourselves to place the feet firmly in the academic research world. Research is defined as systematic way of collecting facts and information in order to interpret them with a purpose of identifying a given subject. Methods are employed to carry out a research through observations, interviews and qualitative and quantitative data. Having understood that, one might think why do we need research methods? Because there is no perfect way to carryout research, knowing several approaches ensure suitable methods are used to produce quality research.

Here we given the opportunity to apply the theory and critically review the proposed research paper on ‘’the effects of taxation on sustainable development’’ by Greg Mcgill. Paper defines and explores the problems in present system of taxation upon sustainable development. In particular how the taxation on capital and labour affect better use of land, leading to poor housing, losing jobs and depression in economy. Author present arguments for shifting taxation towards land to meet objectives of town planning and ultimately achieve sustainable development.

At the outset, research topic is clearly defined, problem identified, cause and effects mentioned, consequences explored and the suggestion for improvements, method of implementation have been proposed with factors prevented planning professionals to think out of the box. However numbers of issues need some attention.

Research paper is structured as abstract, introduction, effects of existing tax system, effects of tax shifts towards land, further action and conclusion. Presentation of material appears to be less attractive as neither all paragraphs presented with simple two or three ideas nor arguments flow from one paragraph to another instead information is overwhelmed. Looking at ...

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Author appears to be brilliant in handling cause effect relationship to justify his arguments. For example McGill writes 'with land and property largely untaxed, this increases the interest in land' here McGill provides the cause. Later on McGill shows the effect of the current tax system 'what the existing tax system does is create an incentive to hold land without improving because gains can be made simply by retaining possession.' This quote is enforced by a reference.

In some cases McGill has identified the cause and effect but failed to back up his effect with either primary or secondary research. For Example 'Existing tax encourages urban sprawl'. This fact does seem sensible and logical but due to lack of evidence makes the effect seems less persuasive. However, apart from discussing effects of present tax with cause and effect under different sub heading, he brilliantly comes up with combined effect and the cyclical effects. E.g. speculation of land and inflationary effect artificially increase demand and withhold land from productive use.

Moreover, tax system makes land expensive leading to building on the edge of the city resulting in urban sprawl. This makes increased dependency on car which requires more space to park widening sprawl further.

Author wisely uses other writers’ contribution to reinforce his ideas which improves the credibility of the research. However if the references are high, authors’ contribution become questionable. In addition, more than 85% of references are at least ten years old which may not reflect the present situation. In reviewing the evidence author seem to use multiple sources such as department for communities and local government 2008, valuation office agency and new economics foundation. This ensures the balanced perspective. However figures could have better tackled in table, annexed to appendix to improve readability and comparability to justify increase in both residential and industrial land value between 1982-2001. Under effects of rising rents, In-consistent style is evident in figures. Comparative years are not same and for the fourth point, percentage value is omitted.

Author is smart in drawing best practices from various countries (e.g. Pittsburg-USA) to support his proposal of replacing land tax with the prevailing property tax to make an initial shift towards land tax. Author went on to pointed out how law and statutes discourage the difference between land and capital and the misunderstanding of planning professional in relation to creation of land value led to the development of present tax system.

Existing taxes increase municipal and infrastructure costs in short term. In long term investment in infrastructure facilitate economic development. This suggests lack of emphasis given for opposing arguments. Finally a statement with grammatical error is provided without proper explanation before the conclusion part which either removed or further explanation required.

Overall, author’s arguments well presented with cause and effect mostly supported by evidence although it may not reflect present situation. He needs to pay attention on the organisation of material and use simple powerful paragraphs which flow from one another. It is persuasive to the reader however a tight conclusion reinforcing main ideas could have added more value.