I've recently discovered Georgism and I am fully on board with land value taxes. It just seems like a no brainer to me to implement it. Income tax discourages hard work and up-skilling. Capital gains tax discourages investment. Land value tax discourages…what exactly? besides land speculation and excessive land ownership by speculators and real estate giants. Land is a finite resource, so taxing it does not reduce its availability.

    LVT would encourage efficient use of and improvement of land. It naturally falls more heavily on the wealthy who can afford the tax. It would make housing more affordable.

    The only problems I've heard (and why they're not a big deal) is:

    1. Landlords will pass along costs to renters (Landlords already charge what they can: the market value)

    2. Accurate enough assessment requires many costly human assessors (With loads of data and state of the art statistical methods, getting accurate land values en masse is not very costly)

    3. Capital flight (If your wealth is in land, you can't take the land with you when you leave)

    With housing becoming so unaffordable in many developed nations, why isn't LVT more popular? Is there a downside I'm missing? Are there too many landowners who selfishly want their homes to continue appreciating in value at the detriment of people who can't afford a home?

    Why are land value taxes not incredibly popular?
    byu/PBnJe11yfish inAskEconomics



    Posted by PBnJe11yfish

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