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You're taxing profits, not sales. If the value of land more closely tracked inflation, people will look to other markets for growth. To put it another way, why
by humanrebar 11y ago
You're taxing profits, not sales. If the value of land more closely tracked inflation, people will look to other markets for growth.
To put it another way, why don't people sit on their cash? They're taxed on most cash transactions, right?
- lmm 11y ago> If the value of land more closely tracked inflation, people will look to other markets for growth. Sure, but as long as it can be used to extract rent at no cost, the value of land is going to keep going up. > why don't people sit on their cash? They're taxed on most cash transactions, right? Inflation is a de facto tax on holding cash. Without it people probably would sit on their cash.