Replacing all current taxation with a 20% land asset value tax and a 12.2% consumption tax would maintain current levels of government revenue, while raising welfare by 5.2% and output by 26%.

“The final simulation of our study has shown just how far the stimulus effects could be taken if a radical reform is not ruled out. It shows that optimal taxation can raise more than half of all tax revenue using a tax on the current asset value of land even if the tax rate is capped at 20%, and would raise the remainder by a consumption tax of around 12%, with all taxes on incomes abolished. This would increase welfare and output by 5.2% and 26.0%.”