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https://en.wikipedia.org/wiki/Land_value_tax https://en.wikipedia.org/wiki/Land_value_tax
by psychometry 6y ago
https://en.wikipedia.org/wiki/Land_value_tax https://en.wikipedia.org/wiki/Land_value_tax
- seanalltogether 6y agoMy understanding is that land value tax would actually increase the taxes paid by existing residents as more people move in. For example, if a town has 1000 families split among 1000 equal parcels of land, each landowner would contribute enough taxes to the city budget to provide services for 1 family. If I then take 100 parcels of land away and put 600 apartments on them, now I have 1500 families among 1000 parcels of land. The city will now require each landowner to cover the budget costs of 1.5 families
- psychometry 6y agoYour math is wrong. Assuming that desired tax revenue should scale linearly with the number of families, the owners of the non-apartment parcels would be paying 1.35 times what they paid before the apartment building was built, not 1.5. However, even ignoring all of the questionable assumptions that go into such an unrealistic scenario, the tax justifies itself since that neighborhood was clearly massively underdeveloped compared to its land value (i.e. housing demand).