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But if it's replacing my taxes then it can't be used to fund a UBI. I guess I could be open to such a tax but only if I thought I would be able to sell my home

But if it's replacing my taxes then it can't be used to fund a UBI. I guess I could be open to such a tax but only if I thought I would be able to sell my home before the massive price deflation. It seems like implementation of such a tax would have huge negative economic implications in the short term. Imagine taking out a mortgage on a property, then LVT is implemented and now your home is only worth 50% or less of what it was before. Now you suddenly owe twice the value of the house to the bank.

ItsMonkk 5y ago
Hence why I said that the shift can be done slowly over 20 years. Say ramp up the taxes 5% per year until home prices reach equilibrium.
- jxidjhdhdhdhfhf 5y ago
  Current prices factor in the expected future value of a property. So, rolling out the tax over 20 years would still have a massive deflationary impact on prices today.
imtringued 5y ago
That's true but that's one of the fundamental problems with land ownership. The government sells the land while it is cheap, now it has no control over land usage anymore, it cannot do anything to fix the problem unless it repossesses the land at the current market value (or at least enough to pay the mortgage). There are some workarounds, one could grant the property a tax discount equivalent to the assessed market value or pay zero tax for 20 years and then introduce the LVT. However, this would run into a different problem in the short term. The government would not receive property taxes for 20 years, at that point, outright buying the land would be a more appealing option because it is far less complicated.