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Why a land-value tax is inevitable

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Re: Why a land-value tax is inevitable

#301
post #220
post #194

Earlier quoted context omitted.

The general incentive to make money always exists, yes, but if LVT is implemented, there would, I assume, be an almost insurmountable force compelling landowners to do so. I compared LVT with the idea of “fiduciary duty” with intentional precision; CEOs are also, in general, incentivized to make money, but the idea behind decrying the alleged fiduciary duty is that a CEO is supposedly more or less forced to do whatev…

Fiduciary duty isn't that big of a deal compared to the general incentive to make money. When CEOs are hired they are screened to be the sort of people who want to make money. If I had a controlling share of a company and the CEO didn't want to make profitable decisions there isn't any special legal construct needed - he'd be gone and somebody new would be hired. Most shareholders are the same. > ... regardless if th…

In your first paragraph, you’re talking about actual fiduciary duty, but I was making an analogy not with what fiduciary duty actually is, but instead with the idea of it which people usually argue against. People usually say that fiduciary duty creates and even enforces thoughtless short-term greed, and argue that is bad for society and also the company in the long run. Regardless of what fiduciary actually is in reality, how is then LVT any different from creating the same short-term enforced greed?

The rest of your text can be summarized as “whoever has money deserves to have it, and should be trusted to make decisions which override any community which, in aggregate, have less money”. I believe this to be a somewhat controversial stance.

Re: Why a land-value tax is inevitable

#302
post #290

Earlier quoted context omitted.

If they'd skipped straight to UBI they likely wouldn't have done these jobs.

But this is a hypothesis not actually supported by your example. A better example would be a case were the application of an UBI created negative effects in a society.

I'm not sure why you need to prove that it creates negative effects to say that there is a better option. Is UBI better than nothing? Probably quite a lot. Better than a JG? No, I don't think so.

This story very much demonstrates that giving people jobs helping the community rather than just money is a better option. They were both productive and happier. So much so that they didn't want to stop.

I'm sure the nature of the job probably had something to do with it. If these jobs were in call centers for debt collectors they probably would have quit en masse and been happy about it.

Re: Why a land-value tax is inevitable

#303
post #288
post #192

Earlier quoted context omitted.

> The tax administration evaluates the property's value (both land and infrastructure) That's not what the article is proposing; it specifies a tax only on the land, not on whatever is built on the land. The point is to incentivize transferring ownership of the land to whoever can get the highest value use out of it; that only works if the tax itself is only on the land, so it makes sense to build higher value infras…

Sure, but would that be the case either way? I am quite suspicious how it would work better than the property + undeveloped land tax. And I would say LVT would disproportionally affect the poorer folk who live in the country side with a lot of land without anything to build on it. But I guess these points have already been discussed in this thread.

Poorer folk in the countryside will be surrounded by land that is worth less and will be taxed less accordingly. Land value tax means a square meter in manhattan gets taxed the same as an acre in middle of nowhere wyoming.

Rich folk hoarding higher value but physically smaller land/buildings in the city centres surrounded by amenities and transport infrastructure will be buried in taxes. Either they make that land work for its taxes or they yield it to somebody who will.

It'll cause better development of land too since land speculation will be removed from the land development formula. Either you make buildings people like and want to rent and you make a profit or you don't. As a landlord you'll be both insulated from declines in an area's popularity and unable to profit from an area being suddenly fashionable.

Re: Why a land-value tax is inevitable

#304
post #198

Earlier quoted context omitted.

This is a land value tax, not a tax on the improvements. If you have a lot worth $50,000 and a house worth $250,000, and place a value of $50,000 on it for tax purposes, do you propose people can buy your house for $50,000?

No, they buy the land underneath your house for $50,000. They can then charge you a use fee for the land. If you don't want to be charged a use fee, you publish a higher price for your land.

I can't see any downside to that :-) This "solution" kinda proves the core idea is unworkable

Re: Why a land-value tax is inevitable

#305
post #275

Earlier quoted context omitted.

The fix that no one seems to talk about is to abolish usury/interest. Islam, Judaism, and Christianity outlawed lending money with interest many centuries ago, and for good reason. Once the core is fixed, we will see benefits across the board almost by definition. Ban parasitic and immoral practices (interest/usury, stock shorting, selling debt for debt, short and long option positions [aka gambling], etc.) and thing…

This is nonsense economics. Whether monetary policy or "natural", Capitalism as we know it relies on huge growth to have good outcomes. If you want a steady-state economy, you're going to need far more reforms than this, and if you want capitalism without interest you're shit out of luck.

It's not nonsense economics because it's proven to work. Islamic finance heavily encourages proper economic growth through correct risk sharing. Want to open a business? Get VC funding and grow the company, if it succeeds, all parties profit, if it fails, all parties share the risk. This is in line with capitalism, just without the immoral and parasitic practices that make it unstable, as we see today.

It's worth pointing out that the SEC banned short selling during the 2008 economic crisis, I wonder why. Not to mention that without interest bearing loans and selling debt for debt, there wouldn't have been a 2008 crisis to begin with.

The solution is less taxation, while removing the parasitic practices that underly the economy today.

Re: Why a land-value tax is inevitable

#306

Earlier quoted context omitted.

1. I agree that people need to be housed. 2. But I don’t agree that property rights ought to be snatched from owners. 3. I also don’t think we could keep on increasing the world population when we have clearly crossed carrying capacity. They are all different issues and points. Not necessarily related. You don’t need separate a person’s property from him just because a few million people are homeless. You don’t need…

> But I don’t agree that property rights ought to be snatched from owners. Nobody's calling for any snatching of property rights. What's being called for is for landowners to internalize the opportunity costs they've externalized on the rest of society (and, indeed, the planet). > I also don’t think we could keep on increasing the world population when we have clearly crossed carrying capacity. As much as I agree, un…

When you start instructing landowners what to do with their property, that’s infringing upon property rights especially if failure to do so results in penalizing them.

Your argument states that empty land would be better served if it’s used for other human beings. The same argument if applied to a time scale rather than upon land resources, it is rational to conclude that our planet is better off if people had 1/2 surviving child per person until we hit carrying capacity.

If land owners should be taxed for owning land they don’t use, we should also have a child tax for future exponential growth of a certain set of genes who will monopolize the world’s population by over breeding.

Humans can continue to enjoy baby making(it’s not unlike some human beings enjoy owning vast tracts of land they dont put to use) but left to their own devices and without encouragement, if they are allowed to bear the full cost of raising the fruits of their loins, I think the numbers will go down dramatically.

If goods cost as much as it takes to make them..especially food which is grown at tremendous costs(not just monetary), we will realize that the abundance is a myth and scarcity is our reality.

Re: Your final point..people who own property don’t contribute to suburbs and rural sprawl. It is those who can’t make proper decisions personally and financially who make choices FOR themselves. Things like where to live, what job to do and what to study are easy choices. Inheriting illness, disabilities are choices we didn’t make, but was made by nature for us. We take care of vulnerable people who had no control over their deficiencies because we share as a species DNA with them.

That obligation and duty towards our collective humanity is entirely different than feeling responsible for personal decision making.

Sometimes people make terrible decisions for themselves because they are unable to make best decisions for themselves. In those cases, we have to make decisions for them if we feel responsible for them. These kind of things never end well as history as shown and is best avoided if possible. An example would be the mentally ill. Many refuse to take medications and their circumstances cause them to suffer. Those are tough decisions. But even then there is no need to penalize private property owners.

None of these issues are connected to each other. I doubt if anyone cares about urban sprawl. An easy target is private property owners and that comes from what I can only term as jealousy in simplistic terms.

In today’s world, we have managed to conquer crippling poverty even though there is much work to do. GINI co-eff fueled inequality makes villains out of the property owners. That is a dangerous path to take..once again, as history has shown us.

Re: Why a land-value tax is inevitable

#307

Earlier quoted context omitted.

Ah, okay -- that I did not know. The effect of the policy over the past decades has still been to allow the value to dramatically increase relative to the taxation.

> The effect of the policy over the past decades has still been to allow the value to dramatically increase relative to the taxation. No. The problem is they're not building enough housing. Not that taxes aren't high enough.

No, that's not right. Poor tax policy leads to poor land use.

Re: Why a land-value tax is inevitable

#308

Earlier quoted context omitted.

Parents pass down their genes. They benefit.

The genes benefit. The individual doesn't really. Dawkins wrote a book about it: 'The Selfish Gene'.

The book came out in 1976 and there has been a lot of discussion and debate around it since then. Wikipedia can update you and is easy to look for links in the reference : https://en.m.wikipedia.org/wiki/The_Selfish_Gene

[..] The view of The Selfish Gene is that selection based upon groups and populations is rare compared to selection on individuals. Although supported by Dawkins and by many others, this claim continues to be disputed.[33][34] While naïve versions of group selectionism have been disproved, more sophisticated formulations make accurate predictions in some cases while positing selection at higher levels.[35] Both sides agree that very favourable genes are likely to prosper and replicate if they arise and both sides agree that living in groups can be an advantage to the group members. The conflict arises in part over defining concepts:

"Cultural evolutionary theory, however, has suffered from an overemphasis on the experiences and behaviors of individuals at the expense of acknowledging complex group organization...Many important behaviors related to the success and function of human societies are only properly defined at the level of groups".[34] In The Social Conquest of Earth (2012), the entomologist E. O. Wilson contends that although the selfish-gene approach was accepted "until 2010 [when] Martin Nowak, Corina Tarnita, and I demonstrated that inclusive fitness theory, often called kin selection theory, is both mathematically and biologically incorrect."[36] Chapter 18 of The Social Conquest of Earth describes the deficiencies of kin selection and outlines group selection, which Wilson argues is a more realistic model of social evolution. He criticises earlier approaches to social evolution, saying: "...unwarranted faith in the central role of kinship in social evolution has led to the reversal of the usual order in which biological research is conducted. The proven best way in evolutionary biology, as in most of science, is to define a problem arising during empirical research, then select or devise the theory that is needed to solve it. Almost all research in inclusive-fitness theory has been the opposite: hypothesize the key roles of kinship and kin selection, then look for evidence to test that hypothesis." According to Wilson: "People must have a tribe...Experiments conducted over many years by social psychologists have revealed how swiftly and decisively people divide into groups, and then discriminate in favor of the one to which they belong." (pp. 57, 59) According to Wilson: "Different parts of the brain have evolved by group selection to create groupishness." (p. 61)[..]

Re: Why a land-value tax is inevitable

#309
post #132

Earlier quoted context omitted.

On HN we go by article quality, not site quality. https://hn.algolia.com/?dateRange=all&page=0&prefix=false&so...

Link disintermediation: https://medium.com/@phila_31297/why-a-land-value-tax-is-inev... (And reputation and trust matter.)

Oh, that's a legit reason to change the URL. We've changed it now from https://www.progress.org/articles/why-a-land-value-tax-is-in..., which points to this. Thanks.

Re: Why a land-value tax is inevitable

#310
post #132

Earlier quoted context omitted.

On HN we go by article quality, not site quality. https://hn.algolia.com/?dateRange=all&page=0&prefix=false&so...

I hear you, dang, but I’d rather not spend my time on a site that also hosts those kinds of articles. I don’t want to support them. I don’t want them to gain credence because they happen to have an article that’s not filled with harmful paranoid delusions. I don’t want my pageview to give them credibility capital. In other words, I don’t think it’s possible to completely separate an article from its site, and so why…

One problem with this argument is that users don't agree on what sites deserve that description. If we were to ban the union of all sites that some people feel this way about, that would be a lot of bannage. I don't think HN would be better for this.

The main thing to understand about HN is that we're trying to optimize for intellectual curiosity: https://hn.algolia.com/?dateRange=all&page=0&prefix=true&sor.... I'm not saying that other things aren't valuable, such as the considerations you're raising—they are. But we can't optimize for one thing without foregoing other good things.

We do ban and penalize some sites on HN. We ban the ones that are clearly off topic or spam, and penalize ones that are quite likely to be off topic, or whose popularity/interestingness ratio is too high (which is basically almost all major media sites). But even when a site is banned, when a particularly good article appears there, users can vouch for it and upvote it. All of this follows from what we're trying to optimize for.

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