Since people can barely afford land and homes as it is, I’d love to hear how this will help make land more affordable or available.
Detroit wants to be the first big American city to tax land value
21–30 of 910 posts
Re: Detroit wants to be the first big American city to tax land value
#22Earlier quoted context omitted.
Less taxes are good, but if the taxes are there to help remove negative externalities from the market it will be a net win. I wouldn't mind paying a bit more property taxes if it meant property values weren't sky high and it discouraged land hoarding. Land tax is good in that it still rewards developers for creating value, but not speculators or people who buy land and don't actually provide value.
This is not a problem Detroit has
40% of all land parcels in downtown are _parking lots_.
Tell me more about how nobody's hoarding land.
Re: Detroit wants to be the first big American city to tax land value
#23I thought Detroit has been in decline for decades. If anything, you’d think they’d want to attract people back with _less_ taxes.
If it replaces property tax wouldn't this be lowering taxes for people who actually develop on their land?
Re: Detroit wants to be the first big American city to tax land value
#24I'm a big proponent of Land Value Tax. In theory it is one of the healthiest forms of taxation since supply is fixed. It encourages efficient use of land and discourages owners from squatting on undeveloped land just to reap value from its location. https://en.wikipedia.org/wiki/Land_value_tax
I’ve heard economists champion the idea, but I’ve heard little talk about what the tradeoffs are. What are the downsides?
> Residents interested in adding vacant lots or side lots to their properties objected that those additions would have increased their tax bills as if there were a house on the added land, even if it was just an empty lot.
From https://www.washingtonexaminer.com/the-short-life-of-pennsyl....
Re: Detroit wants to be the first big American city to tax land value
#25Virtually every effective hedge against inflation is taxed heavily. There is no respite from dilution. When you look at it from that perspective you see a systematic attack against any safe harbor.
Municipal bonds?
Re: Detroit wants to be the first big American city to tax land value
#26I'm a big proponent of Land Value Tax. In theory it is one of the healthiest forms of taxation since supply is fixed. It encourages efficient use of land and discourages owners from squatting on undeveloped land just to reap value from its location. https://en.wikipedia.org/wiki/Land_value_tax
I’ve heard economists champion the idea, but I’ve heard little talk about what the tradeoffs are. What are the downsides?
High levels of displacement and instability.
The proponents of this I have met are generally wanting to use it force seniors with paid off homes out of them so they can live in them instead (or often build on them, as they are property developers).
It also assumes that NIMBYism remains at the same level, which is challenging, as every new build or development nearby increases your own taxes. It would also encourage the childless to fight things like schools, as they would pay extra tax having them nearby.
Re: Detroit wants to be the first big American city to tax land value
#27I'm a big proponent of Land Value Tax. In theory it is one of the healthiest forms of taxation since supply is fixed. It encourages efficient use of land and discourages owners from squatting on undeveloped land just to reap value from its location. https://en.wikipedia.org/wiki/Land_value_tax
I’ve heard economists champion the idea, but I’ve heard little talk about what the tradeoffs are. What are the downsides?
You can’t just buy a house young and live there forever. It requires successful people in real real estate investing to develop in order to maintain property, which could piss off neighbors.
Re: Detroit wants to be the first big American city to tax land value
#28By George! this sure sounds like a good idea!
Is that a pun on Georgism?
Re: Detroit wants to be the first big American city to tax land value
#29Since people can barely afford land and homes as it is, I’d love to hear how this will help make land more affordable or available.
It would tend to pressure owners of land that is undeveloped or undeveloped (parking lots) to either build or sell to someone who will.
Re: Detroit wants to be the first big American city to tax land value
#30I'm a big proponent of Land Value Tax. In theory it is one of the healthiest forms of taxation since supply is fixed. It encourages efficient use of land and discourages owners from squatting on undeveloped land just to reap value from its location. https://en.wikipedia.org/wiki/Land_value_tax
So if your neighborhood gets popular you get kicked out? Sounds like a healthy policy. Have you ever thought more than 2 minutes about it?