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That seems like a bit of a murky distinction, though, right? Taxing land disincentives economic activity a large component of which is in the land value (runnin
by whakim 5y ago
That seems like a bit of a murky distinction, though, right? Taxing land disincentives economic activity a large component of which is in the land value (running a parking garage or hotel in downtown Manhattan, or a farm in a fertile region, etc.) but incentivizes other types of economic activity.
- awakeasleep 5y agoDo you think its murkier than things in life are, usually? Or are you comparing it to an abstraction in code.
- sooheon 5y agoRead this to understand the distinction: https://astralcodexten.substack.com/p/your-book-review-progress-and-poverty https://astralcodexten.substack.com/p/your-book-review-progr... George goes to great lengths to distinguish these factors of production. They are fundamentally different.
- abathur 5y agoThis is roughly the point, though. It doesn't _absolutely_ disincentivize these things unless they are operating at a loss. It certainly disincentivizes "economic activity" like opening an at-grade parking lot in a bustling city-center in order to minimize the property tax you pay while the land appreciates in value more than it disincentivizes opening a parking garage there (assuming there's actually enough parking demand to pay to build and maintain). (I don't entirely disagree with you--it seems like this would shunt some investment away from investments that need expensive land. It's less clear to me whether that is good, neutral, or bad.)