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2022-08-05-georgism-land-value-tax
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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?
Resources
Decent Intro / FAQ
https://bluerepublik.wordpress.com/2020/04/28/georgism-lvt-faq/
In depth Summary
https://astralcodexten.substack.com/p/your-book-review-progress-and-poverty?utm
source=pocket
mylist
and follow ups:
https://www.gameofrent.com/
https://www.strongtowns.org/journal/2019/3/8/if-the-land-tax-is-such-a-good-idea-why-isnt-it-being-implemented
2022-08-05
#public-policy
#economics
#land-value-tax
#georgism
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