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Property Tax Vs. Land Tax

Geoist

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With our current economic woes, I believe it is important for local communities to come up with "new" strategies to promote growth. One of the best ways we can do this is by replacing our property tax system with a land tax system. This video breaks it all down:

 
Let's not and only tax real property upon sale, and get our spending under control.
 
Yeah it would do wonders for our economy to make farmers and poorer people subsidize the taxes paid by commercial developers and MacMansion owners.
 
Yeah it would do wonders for our economy to make farmers and poorer people subsidize the taxes paid by commercial developers and MacMansion owners.

The only ones hurt by such a tax system are speculators who's actions contribute nothing to an economy.
 
I didn't clicky, but my first guess regarding problems is the promotion of under-development as investment.
 
I didn't clicky, but my first guess regarding problems is the promotion of under-development as investment.

Our current system certainly encourages idleness and discourages productive use of the land. A land tax in place of a property tax would reverse that trend.
 
Our current system certainly encourages idleness and discourages productive use of the land.

I think you're basing that statement merely upon a property tax being the greater of the two.

A land tax in place of a property tax would reverse that trend.

Maybe I'll clicky later, I'll wait for some discussion.
 
Yeah it would do wonders for our economy to make farmers and poorer people subsidize the taxes paid by commercial developers and MacMansion owners.

It is strong towns. Towns tax differently based on location and property.

It is silly to think a McDonalds would be next to a farm.
 
It is strong towns. Towns tax differently based on location and property.

It is silly to think a McDonalds would be next to a farm.
I think it is silly to equate McMansions with a McDonalds.

I also think it silly to take Georgist clap-trap seriously.
 
I think it is silly to equate McMansions with a McDonalds.

I also think it silly to take Georgist clap-trap seriously.
So you think mansions are next to farms?

The latter I won't discuss since it is a personal attack.
 
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With our current economic woes, I believe it is important for local communities to come up with "new" strategies to promote growth. One of the best ways we can do this is by replacing our property tax system with a land tax system.

How taxes are collected isn't as important as how they are spent. It does't make one bit of difference whether it's the private or public sector...nobody can spend your money "better" than you can. And if you believe that 500+ congresspeople truly can spend your money "better" than you can...then you would truly want to give them all your money. And if you truly wanted to give them all your money...then you wouldn't be here arguing that a land value tax makes more sense than a property tax.
 
How taxes are collected isn't as important as how they are spent.

So you would have no issue with only collecting income taxes from people who have incomes in excess of $400k/yr, as long as the money was spent correctly?
 
So you would have no issue with only collecting income taxes from people who have incomes in excess of $400k/yr, as long as the money was spent correctly?

Tax choice always starts where we are right now...point A. If we implemented tax choice and it led us to point D...while I might personally disagree...it would be based on millions and millions of people spending their own tax dollars "correctly".

I personally disagree that people spend their own money on Brittney Spears...but markets work because, even though the fans of Brittney might disagree with me spending my money on Aphex Twin, we live and let live. It's mutually beneficial.

And if voters wanted Aphex Twin to be illegal...then I'd disagree very much...but it would be up to the public sector market...millions and millions of taxpayers...to decide exactly how much of their own tax dollars they felt was the "correct" amount to spend on trying to prevent me from listening to Richard D. James.

The tax choice entry that I created has been nominated for deletion. What do you think? Do you think I disagree? That would be an understatement. Does that mean that you should be forced to spend a second of your time doing something about it just because I disagree with it?

People aren't perfect...markets aren't perfect...but when you compare them to non sequitur economies (the public sector)...then markets are so far superior that they might as well be perfect.
 
The only ones hurt by such a tax system are speculators who's actions contribute nothing to an economy.

"Speculators" whoever they might be, buy their land from somebody who is not a speculator. I, for instance, have bought several extra tracts of land adjoining and near my home to protect them from development because I do not want to see the woods cut down and the wildlife displaced. You may not see the economic value in preservation of what I did, but it is not without value.
 
How taxes are collected isn't as important as how they are spent.

While it is important to look at how our taxes are spent, we cannot ignore how what we tax can affect an economy (refer to the link I put up on the boom/bust cycle). In general, when we tax something we get less of it. Most taxes lead to a reduction in labor, production, and investment. But since the supply of land is fixed, you do not have the deadweight loss like you do with other taxes.


It does't make one bit of difference whether it's the private or public sector...nobody can spend your money "better" than you can.

Which is why I oppose taxes on what is earned (ie, income tax, capital taxes). Land speculation is unearned wealth.



This makes no sense when you consider the fact that most people who advocate lvt want it as the ONLY tax and that most citizens would actually pay less in taxes.
Land value tax: Saving Communities
 
The only reason you are promoting this idea is that you think all land is owned by everyone. Yeah, I'm still not interested in promoting that idea.
 
I, for instance, have bought several extra tracts of land adjoining and near my home to protect them from development because I do not want to see the woods cut down and the wildlife displaced.

Your land would have a much smaller tax than most suburban/urban because there would be less demand for it. Also, lvt would discourage urban sprawl, which means urban areas would be revitalized and natural areas would be left alone.

You may not see the economic value in preservation of what I did, but it is not without value.

Never said there wasn't.
 
The only reason you are promoting this idea is that you think all land is owned by everyone. Yeah, I'm still not interested in promoting that idea.

If you believe everyone has "a right to be" then it is logical to believe everyone has "a right to be somewhere."
 
In general, when we tax something we get less of it.

So whether or not something is taxed...is more important than whether or not we can purchase it in the first place?
 
i watched the video, and it didn't address the big problem : in the example given, farmers would see their taxes go up 2.5x. i don't consider essential food production as "idle, undeveloped land," and i don't know a lot of independent farmers who could weather the 2.5 x hit. the result of this idea would be a decrease in independent farmers, an increase in major corporate farming, and a decrease in farmland in general, as it's more profitable to do other things with the land. this would not be a net positive; it's not necessarily ideal to allocate land use solely by profitability.

it's a neat idea, but it isn't going to translate to reality.
 
So whether or not something is taxed...is more important than whether or not we can purchase it in the first place?

If we have a land value tax system individuals would be able to purchase more. See previous link.
 

Actually, a land value tax would help farmers. There are a couple reasons for this. First of all, the burden of the lvt would fall mostly on urban land since that is where land values are generally concentrated. Also, any increase in land tax would be offset by paying lower taxes on everything else, a reversal on urban sprawl (nearby development causes those land values to increase), and increase in income.

For more info:
Wealth and Want theme: Farmers and Land Value Taxation
Earth Rights Institute - Pennsylvania Farmers and the Split Rate Tax
 
If we have a land value tax system individuals would be able to purchase more. See previous link.
So the priority should be implementing a land value tax...and then taxpayers should be allowed to choose where their taxes go?
 
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