801–810 of 910 posts
I hope they do try it. If they do, one of two thing will happen. Either it will fail dramatically, in which case the LVT muppets can finally shut up about it... or it will succeed, all of our cities will migrate to this new utopian taxation scheme, and the LVT muppets can finally shut up about it.
It has been tried previously and had success.
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Land value tax is an idea by Henry George - the guy who coined the phrase "the rent is too damn high". His idea is among other things that a property tax discourages investment - one way to make money as an investor is to hold a plot of empty land in a desirable city centre location, watch it go up in value, and neither pay tax on any development on it nor bother with messy things such as tenants. Taxing the land val…
I don't understand how that needs a special tax though. Wouldn't the more obvious choice be to just tax all wealth/assets? E.g. where I live it's just assumed that all your assets produce a yield of 4% yearly, and that is taxed as regular income. Makes the tax declaration also a lot easier, since people don't have to list all exact dividends and profits they might have gotten from investments.
Pufff, Brazil does that since forever. By paying some tax over your land, basically your government is taking it from you every generation or two. Roughly, 2% each year and in 50 years and it's gone.
Also, 2% is in a similar range to many existing implementations, and has been shown to be too low to prevent speculation.
Your comment about "it's gone" shows that you do not understand the intent here. I would recommend you watch the following: https://m.youtube.com/watch?v=h59se33UCK4
In short, the land is not gone. The profits you made if you rented it out are not gone. However, any hope of increased value through speculation will be diminished based on how long you held the high value asset prior to sale... which is the exact intent of this policy change.
It's like people actually want to have world of obscenely rich and obscenely poor people... with nothing in the middle.
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That is a great argument for never building a hot tub, or participating in a project to build one. Why bother making a tub, a neighborhood, or a community if it can simply be taken from you. Id rather burn mine to the ground than have it taken away just because someone else wants it more. They might not even want it more, but they just have more money.
I don't think you understand, it can't be taken from you, at least no more than now. Nearly every single person will pay less tax on their home under LVT than a property tax, too.
How could that possibly be true. The lvt would have to be high enough to replace revenue from all current income taxes, sales taxes, corporate taxes, and current property taxes.
It would also be based on land used, so Warren be buffet and someone working at Walmart would have the same tax bill if they both own houses in the same neighborhood.
It is incredibly regressive.
Elon Musk can live out of his small undesirable home in boca chia, so his total taxes would be close to zero
When will people learn that more taxes make things more expensive? It's like people actually want to have world of obscenely rich and obscenely poor people... with nothing in the middle.
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It is based on 1800's economics where primary production (using raw materials) was the primary source of value creation. It doesn't make much sense for a modern service based economy. Your typical service sector worker, programmers, doctors, CEOs, would have essentially no taxes as long as they have a small geographic footprint. Of course it sounds good to tech b
It isn't the size of their geographical footprint. Rather, it is the location. Actually, locations, for the individual practitioner: their business and their home. They want to be in a good school district that educates all its students well and sends them to good colleges? They pay for the privilege. They want to be close to high-paying jobs? They want to be close to highly-paid homeowners? They want to be close to…
Meanwhile, blue collar workers tied to living in urban centers pick up the bill.
Lvt would completely decouple income from tax burden
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"but ongoing costs to the taxpayer to provide the infrastructure and services that give it this value and potential" Empty land isn't using any of those things. Any future improvement would use those things and be taxed accordingly. If you're concerned about infrastructure costs, the. You want to use a per capita tax or the current property tax that taxes the improvements (where people work or live) since they are us…
So we're paying for all those facilities, infrastructure and so on, and it's going to waste. That's inefficient. We want that land being used productively, contributing to the economy, making profits which pay taxes, to pay for these services.
The idea is that people would be more incentivized to build with the land, because it would impact taxes as much, but at the same time they would pay a higher base rate if they underutilize it.