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I'm sold to Henry George's land value tax idea, if we were to create a nation. But we aren't. In our current situation, I would worry that taxing only the weal
by ebalit 10y ago
I'm sold to Henry George's land value tax idea, if we were to create a nation. But we aren't.
In our current situation, I would worry that taxing only the wealth "stored" in land ownership would create a massive economical crisis as capital tries to escape this new tax.
A broader wealth tax base, with a slightly higher rate for land, is a more prudent approach.
- eru 10y agoThe Australian capital territories are currently phasing in a broader land taxt and phasing out stamp duty in exchange. Not flight of capital has happened so far, and no crisis either. And how is land supposed to flee? You can't take soil with you. Wouldn't a broader wealth tax that applies to movable capital as well lead to that very moveable capital fleeing? (As an example, I am currently in the process of optimizing my own capital gains taxes, by eg choosing the country I hold my assets in carefully.)
- ebalit 10y agoI was more talking about a fall of real estate valuations as you introduce a significant land value tax. And it must be significant to cancel the impact of land value on the rise of inequality.
- eru 10y agoPhase it in gradually. Land prizes don't actually fall in practice with introduction of land value tax, if it goes hand in hand with elimination of other taxes. In effect, shifting the tax base from labour and capital to land.