4 ms·
The Land Value Tax is tied to the assessment of the value of the land. If the landlord raised the rent 20%, sans improvements (which are not taxed), the assesse
by arrosenberg 5y ago
The Land Value Tax is tied to the assessment of the value of the land. If the landlord raised the rent 20%, sans improvements (which are not taxed), the assessed value of the land itself would go up 20% as a reflection and nullify the incentive to raise rent in the first place.
The only way you can raise rents (in a way that nets a profit) under a LVT is to improve the property or provide services. If you own a 4 unit complex and you want a higher return, you need to build more units, a gym or provide on-site dry cleaning. This also means more efficient land-use in areas of high land value (i.e. densely built town/city centers). Since no more land can be produced, and speculation cannot produce profit, the incentivized usage is a productive one (building more housing where it's in high demand).
Philosophically, a person who supports this concept wouldn't view it as the landlords paying everyone's UBI. We can respect every American's right to enjoy private property, while also holding the value of that property as a public trust. The LVT payments represent the capture of that value, and the UBI is the mechanism by which the public share is distributed.