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And then when people start artificially building vertically rather than laterally in order to avoid paying taxes? Then you change your tax calculation to be bas
by zo1 11y ago
And then when people start artificially building vertically rather than laterally in order to avoid paying taxes? Then you change your tax calculation to be based on square-footage of space-available, and then you're back to square one where 'taxes impact supply'.
- pessimizer 11y agoOr you could not tax them more, or at a lower rate that accounts for the sunshine they block out and the airspace they occupy. That would encourage the density that every wealthy technocrat is gagging for.
- eru 11y agoNo, you want them to build up. Tax will be levied on the value / rental income of the unimproved land---not on a fixed charge per area. (There are some ways to use auctions to set these taxes automatically in an economically efficient way.) See eg http://www.economist.com/blogs/economist-explains/2014/11/economist-explains-0 http://www.economist.com/blogs/economist-explains/2014/11/ec... or https://en.wikipedia.org/wiki/Land_value_tax https://en.wikipedia.org/wiki/Land_value_tax Very beloved by economists.