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If you buy cheap land, build a subway out to it, and now the land is worth more, what should happen to your land value tax? (I talked about this some in https:
by jefftk 7y ago
If you buy cheap land, build a subway out to it, and now the land is worth more, what should happen to your land value tax?
(I talked about this some in https://www.jefftk.com/p/land-value-taxes-are-distortionary https://www.jefftk.com/p/land-value-taxes-are-distortionary , which I probably should have linked from the article)
- haihaibye 7y agoThe by far more common scenario is taxpayer dollars build infrastructure which is captured by private land holders. But thanks for coming up with an interesting thought experiment by inverting it. If the government is reasonable they should have exemptions for this: * Pay you back for infrastructure development * Have the government agree to treat the area as a whole (it was unimproved land til you improved it) then grandfather prices in as you subdivide If they are completely unreasonable I guess you are left with: * Don't subdivide instead rent out the parts of your unimproved superblock * Charge so much for a subway there is no consumer surplus and recoup your money that way