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> which will tax you 100% of the value of your property If it's a property tax, yes. If it's a land tax, no. Under land tax you tax the "ground rent" value of
by larsiusprime 6y ago
> which will tax you 100% of the value of your property
If it's a property tax, yes. If it's a land tax, no. Under land tax you tax the "ground rent" value of the land, not what's built on it. "Ground rent" is what it costs to rent out your land if it was an empty lot with nothing on it. Property tax and land tax are very different things with very different effects.
- tvanantwerp 6y agoIn high-demand cities, the land is the expensive part—not the house on top of it.
- larsiusprime 6y agoRight you are, and the land tax is specifically designed to destroy the speculative activity that causes it to increase forever.
- chordalkeyboard 6y agoHow are we determining that the land value increased because of speculation, and not because the land continues to become exponentially more valuable do to its location in a popular area?
- goesnowhere 6y agoYeah thats kinda the point.
- notahacker 6y agoThe Georgist land value (which Altman suggests might be more practically replaced by a system linked to actual property transaction values) is still going to be a sufficiently large proportion of the value of a typical home to ensure pretty much anyone not living in a multistorey tenement block is paying massively higher tax rates on their home than anyone pays on a YC company.
- larsiusprime 6y agoOne of the chief purposes of a land tax is to destroy the speculative activity which drives land prices up forever and ever.
- colinmhayes 6y agoAs it should be. Single family homes are wasteful, they should cost more.
- imtringued 6y agoThe entire point of land value taxes is to turn land into a liability. You don't get to benefit from the accomplishments of other people. You only get to benefit from your own accomplishments e.g. by building a multistory tenant block and renting it out.