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Georgism

en.wikipedia.org

31–40 of 338 posts

Re: Georgism

#31
post #24

I've yet to see a single valid objection as to why LVT (Land Value Tax) should not be the primary tax, yet it's nowhere to be found in the political dialogue. Such a shame that the majority of the tax burden instead falls on the working class while the landowners get a free ride.

It actually makes much more sense to use a uniform sales tax: (1) If you spend more, you're taxed more. Obviously this is better for poorer people, who spend less, but also for rich yet reserved people, who keep most of their money in the bank (which lends it) and are earning an income (=productive). Both will not penalized. (2) It's much hard to raise, because people will just stop buying stuff, which is much easier…

> rich yet reserved people, who keep most of their money in the bank (which lends it) and are earning an income (=productive) ... will not penalized.

This goes against just about every standard defense of the ability to be rich: that rich people are job creators, that they power the economy by buying things, etc. Why should we discourage them from employing people and buying things? I don't want a loan (that needs to be repaid) from a bank from a rich person, I want the rich person to either employ me or buy goods and services from me.

Actually, that's another point - does employment incur your "sales" tax? If not, it's more advantageous to hire a private chef or driver than to pay for a restaurant meal or a taxi trip, which makes the tax regressive - there's a discontinuity when you're able to hire someone instead of getting a service from a business.

Re: Georgism

#32

I've yet to see a single valid objection as to why LVT (Land Value Tax) should not be the primary tax, yet it's nowhere to be found in the political dialogue. Such a shame that the majority of the tax burden instead falls on the working class while the landowners get a free ride.

What tax should tech companies pay then, given that the only land they really need is cheap rural land for data centers?

This taxation system does make sense for land, but there's way more economic activity happening that isn't associated with land than there is that is.

Re: Georgism

#33
post #20

The problem with georgism is that “unimproved value” is a non-market price. It’s just made up by whoever is appointed assessor. Georgism conflates made up “value” with market “value”. Ultimately some person has to assess the value of the unimproved land, meaning someone anointed to write down whatever number they want. Value is subjective. There is no such thing as “unimproved land value”, unless you’re talking about…

There is brilliant way to solve it so that value and market-value meet. Keep the land always in market. It's called Common Ownership Self-Assessed Tax (COST). Land owner would self-assess the value of assets they possess, pay a tax on that value. The owner would be required to sell the asset to anyone willing to purchase them at this self-assessed price. If you value the land high for any reason and want to keep it,…

The land most people live on does have market precedent so this would be unnecessary.

This idea could still be workable for unimproved land

Re: Georgism

#34
post #24

I've yet to see a single valid objection as to why LVT (Land Value Tax) should not be the primary tax, yet it's nowhere to be found in the political dialogue. Such a shame that the majority of the tax burden instead falls on the working class while the landowners get a free ride.

It actually makes much more sense to use a uniform sales tax: (1) If you spend more, you're taxed more. Obviously this is better for poorer people, who spend less, but also for rich yet reserved people, who keep most of their money in the bank (which lends it) and are earning an income (=productive). Both will not penalized. (2) It's much hard to raise, because people will just stop buying stuff, which is much easier…

The issue I've always had with the uniform sales tax idea is that poorer you are, the larger percentage of your money you pay in taxes. As a total cost, it's ultimately regressive.

Re: Georgism

#35
post #28
post #20

Earlier quoted context omitted.

There is brilliant way to solve it so that value and market-value meet. Keep the land always in market. It's called Common Ownership Self-Assessed Tax (COST). Land owner would self-assess the value of assets they possess, pay a tax on that value. The owner would be required to sell the asset to anyone willing to purchase them at this self-assessed price. If you value the land high for any reason and want to keep it,…

That would mean anyone who has enough money can buy the land that people live on just to harass them. It’s an interesting idea, and I like it in principal, but I also like living in my house on my land knowing that I need to give permission before someone can buy it.

There would be likely exception for normal sized houses where people actually live or if there is way to asses the value other way. Pay normal n% tax and they can't buy it.

Mansions and expensive property would be always on the market.

Re: Georgism

#36

I've yet to see a single valid objection as to why LVT (Land Value Tax) should not be the primary tax, yet it's nowhere to be found in the political dialogue. Such a shame that the majority of the tax burden instead falls on the working class while the landowners get a free ride.

What tax should tech companies pay then, given that the only land they really need is cheap rural land for data centers? This taxation system does make sense for land, but there's way more economic activity happening that isn't associated with land than there is that is.

They generally locate where they can draw on a pool of talented people, and those people are drawn by social amenities, good schools, good infrastructure. All those things contribute to land value.

Re: Georgism

#37
post #20

The problem with georgism is that “unimproved value” is a non-market price. It’s just made up by whoever is appointed assessor. Georgism conflates made up “value” with market “value”. Ultimately some person has to assess the value of the unimproved land, meaning someone anointed to write down whatever number they want. Value is subjective. There is no such thing as “unimproved land value”, unless you’re talking about…

There is brilliant way to solve it so that value and market-value meet. Keep the land always in market. It's called Common Ownership Self-Assessed Tax (COST). Land owner would self-assess the value of assets they possess, pay a tax on that value. The owner would be required to sell the asset to anyone willing to purchase them at this self-assessed price. If you value the land high for any reason and want to keep it,…

This seems to be directly in conflict with the idea that once you own land, it's yours. I don't see this flying at all, at least not with the current expectations of most people.

Any sizable company could easily bully any number of people out of their homes to acquire the land. It's hard to overstate how much people would hate this.

Re: Georgism

#38
post #20

Earlier quoted context omitted.

There is brilliant way to solve it so that value and market-value meet. Keep the land always in market. It's called Common Ownership Self-Assessed Tax (COST). Land owner would self-assess the value of assets they possess, pay a tax on that value. The owner would be required to sell the asset to anyone willing to purchase them at this self-assessed price. If you value the land high for any reason and want to keep it,…

This seems to be directly in conflict with the idea that once you own land, it's yours. I don't see this flying at all, at least not with the current expectations of most people. Any sizable company could easily bully any number of people out of their homes to acquire the land. It's hard to overstate how much people would hate this.

> once you own land, it's yours.

Idea that you can buy a monopoly is generally a bad idea.

Re: Georgism

#39
post #20

The problem with georgism is that “unimproved value” is a non-market price. It’s just made up by whoever is appointed assessor. Georgism conflates made up “value” with market “value”. Ultimately some person has to assess the value of the unimproved land, meaning someone anointed to write down whatever number they want. Value is subjective. There is no such thing as “unimproved land value”, unless you’re talking about…

There is brilliant way to solve it so that value and market-value meet. Keep the land always in market. It's called Common Ownership Self-Assessed Tax (COST). Land owner would self-assess the value of assets they possess, pay a tax on that value. The owner would be required to sell the asset to anyone willing to purchase them at this self-assessed price. If you value the land high for any reason and want to keep it,…

Someone being able to take my house or business away at any time because they have more money doesn’t sound brilliant or practical. It’s also not market based at all. Trades are willing.

Re: Georgism

#40
post #24

Earlier quoted context omitted.

It actually makes much more sense to use a uniform sales tax: (1) If you spend more, you're taxed more. Obviously this is better for poorer people, who spend less, but also for rich yet reserved people, who keep most of their money in the bank (which lends it) and are earning an income (=productive). Both will not penalized. (2) It's much hard to raise, because people will just stop buying stuff, which is much easier…

Sales tax fails to capture the accumulation of capital, so (1) is kind of bogus. If you make 100 billion dollars and invest it you and several generations of your family coild live comfortably without ever working and your tax burden would only depend on your spending. A sales-only tax incentivized rent seeking, basically, because the rentiers pay the same taxes as the renters while accumulating capital.

and so often it gets invested in land, which includes not just the sites under our feet, but vital natural resources, the kind that are finite in supply.
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