4 ms·
> What stops all of the landlords from just pricing the tax into rent? Nothing stops them from doing that at all; in fact they should. Total rent = (rent from
by solresol 5y ago
> What stops all of the landlords from just pricing the tax into rent?
Nothing stops them from doing that at all; in fact they should.
Total rent = (rent from the improved structure on the land) + (rent from land)
Landlords should be given the right to extract money from people because they have built a nice house for renters to live in. Where Georgism disagrees is that that landlords shouldn't be given the right to extract money from people simply because they own land there (the second part of the equation). Or to be more precise, a large chunk of the money extracted from land ownership gets taken from landlords so that they don't derive much value simply from owning land and doing nothing with it.
That incentivises landlords to increase the value of the building on the land (e.g. higher density housing, batteries and solar panels, longer-lasting structures) in order to increase the portion of the rent that the landlord gets to keep.