📓 georgism - land value tax

LVT will not raise prices
- b/c supply is fixed, so owners eat the tax
  - https://bluerepublik.wordpress.com/2019/07/31/welfare-economics-of-the-land-value-tax/
- in places that are "not competitive", will actually reduce pricing

a few key points
- considers land as special category (wheareas most other economic theories treat it as property)
  - but land is special b/c its supply is fixed, de facto monopolistic
- value of land increases due to neighbours efforts
- theory: all "progress" / "value-creation" is absorbed by land rent
benefits: (vs income, capital gains etc.)
- land can't be hidden / moved
- no "deadweight" tax
- somewhat has a moral basis
  - "keeping someone out"
  - also, value increases due to neighbors improvements
- removes speculation
- greatly incentivizes government to make public improvements
  - (which can pay for themselves from the resulting increase in land value)
    - (this is already done, but increasing land tax rate makes more projects feasible)

IMO
- key political obstacle is figuring out how to do a smooth transition
- what would a "board game" look like to show what an LVT is like?

2022-08-05

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