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There are many reasons, especially for taxes on the value of land: * The value of land is largely created by public services such as schools, infrastructure, p
by taffer 7y ago
There are many reasons, especially for taxes on the value of land:
* The value of land is largely created by public services such as schools, infrastructure, parks and public transport. Therefore, it makes sense to recover this value through taxation.
* Almost all taxes reduce or distort what is taxed. The supply of land, on the other hand, is fixed and cannot be reduced. This way, public services such as schools can be paid for without distorting the economy.
* Property cannot be hidden or moved to tax havens.
* Land taxes prevent vacancies and thus speculation. The reduction of vacancies also helps against urban sprawl.