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Would it really be disastrous? Say a house rents for $2,000 / month. $1,000 of that is the land, and $1,000 the house. The land value tax is $1,000. We'll p
by JamesBarney 5y ago
Would it really be disastrous?
Say a house rents for $2,000 / month. $1,000 of that is the land, and $1,000 the house.
The land value tax is $1,000. We'll pretend this is an ideal world. If the interest rate is 12% then house+land is worth 100,000.
But imagine the they misappraise the land. So instead they charge 1,500 a month. Then that means the house+land is worth $50,000. That's not ideal but it doesn't seem catastrophic.
If a piece of land is underdeveloped and they charge a little too much, the person just surrenders that land to the government which auctions it off. If no one wants to buy it they know they mispriced the land.
- carom 5y ago>That's not ideal but it doesn't seem catastrophic. >If a piece of land is underdeveloped and they charge a little too much, the person just surrenders that land to the government which auctions it off. I would say a situation where I surrender my land to the government is catastrophic. Feels like it would easily turn into forced sales.
- JamesBarney 5y agoYou're surrending land because land isn't worth anything and you don't want it anymore. The whole point of Georgism is to make land really cheap, by making it expensive to own.