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The single tax, LVT, and Georgism are synonymous. > Georgism proposes to tax the value derived from land Incorrect, it's almost completely the opposite. The G
by sooheon 6y ago
The single tax, LVT, and Georgism are synonymous.
> Georgism proposes to tax the value derived from land
Incorrect, it's almost completely the opposite. The Georgist proposal is rather to tax the economic rent on land, not the value derived from it. Recall the classic example of the landlord leaving his lot in downtown Manhattan undeveloped. No value is derived from the land, the upside for the owner is purely in speculation (benefitting only from improvements to neighboring land).
- ethanbond 6y agoThis was my read as well^ In any case, by whatever name we wish to call it, LVT is the path forward.
- centimeter 6y ago> The Georgist proposal is rather to tax the economic rent on land How do you determine that? Also, here’s the wiki description, which matches what I said very closely: “ economic value derived from land (often including natural resources and natural opportunities) should belong equally to all members of society.[3][4][5]” This is not the same as LVT. LVT doesn’t try to determine the source or type of value, and Georgism does.
- bhupy 6y agoEvery single LVT proposal includes an extremely important stipulation: deducting improvements from the total value, and only taxing the resulting amount. The core thesis is that you don't want to dis-incentivize productive economic activity, and simply holding onto land is unproductive. LVT (and Georgism writ large) propose to tax the unimproved value of land. This is a form of discriminating the source/type of value.