4 ms·

Pretty much true for everything. Most policies only mildly inconvenience the rich.

by isthisthingon99 4y ago

missedthecue 4y ago
https://en.m.wikipedia.org/wiki/Director%27s_law https://en.m.wikipedia.org/wiki/Director%27s_law
- isthisthingon99 4y ago
  Logical
yellowapple 4y ago
One of the key exceptions is a land value tax; seeing as how land ownership by value is concentrated among the rich and powerful, taxing said land value would be inherently maximally progressive (and also happens to be close to ideal in terms of economic efficiency). Surprise surprise, said rich and powerful have gone out of their way to not only resist implementing such a tax, but ensure that the media and education systems under their control pretend it doesn't exist.
- isthisthingon99 4y ago
  It's weird though I hear all my middle class friends complain about property tax. Is there a difference?
  - yellowapple 4y ago
    Property tax taxes both the land and the house on it. Land value tax only taxes the land. For most middle-class homeowners, the house itself constitutes the majority of the overall property value; replacing property tax with land value tax (such that the tax revenue remains the same) would accordingly result in a lower tax burden for most of the middle class. Replacing sales and income taxes with land value tax in the same vein would in turn reduce middle-class tax burdens further and entirely eliminate lower-class tax burdens. Additionally, one of the side effects of property tax is that it penalizes development; development increases the overall property value, so expanding an apartment complex or what have you results in a higher tax burden. Land value tax doesn't have that issue, and instead does the opposite: you're encouraged to develop your properties as much as possible to cover the land value tax. This in turn helps address housing supply shortages (apartment complexes are motivated to amortize their LVT across as many tenants as possible - and can't price LVT into rents without hurting profit margins, due to land having inelastic supply and therefore land value being driven entirely by demand).
    - isthisthingon99 4y ago
      Ah this was very helpful to understand. Maybe after the next civil war...

Pretty much true for everything. Most policies only mildly inconvenience the rich.

missedthecue 4y ago

https://en.m.wikipedia.org/wiki/Director%27s_law https://en.m.wikipedia.org/wiki/Director%27s_law

isthisthingon99 4y ago
Logical

yellowapple 4y ago

One of the key exceptions is a land value tax; seeing as how land ownership by value is concentrated among the rich and powerful, taxing said land value would be inherently maximally progressive (and also happens to be close to ideal in terms of economic efficiency). Surprise surprise, said rich and powerful have gone out of their way to not only resist implementing such a tax, but ensure that the media and education systems under their control pretend it doesn't exist.

isthisthingon99 4y ago
It's weird though I hear all my middle class friends complain about property tax. Is there a difference?
- yellowapple 4y ago
  Property tax taxes both the land and the house on it. Land value tax only taxes the land. For most middle-class homeowners, the house itself constitutes the majority of the overall property value; replacing property tax with land value tax (such that the tax revenue remains the same) would accordingly result in a lower tax burden for most of the middle class. Replacing sales and income taxes with land value tax in the same vein would in turn reduce middle-class tax burdens further and entirely eliminate lower-class tax burdens. Additionally, one of the side effects of property tax is that it penalizes development; development increases the overall property value, so expanding an apartment complex or what have you results in a higher tax burden. Land value tax doesn't have that issue, and instead does the opposite: you're encouraged to develop your properties as much as possible to cover the land value tax. This in turn helps address housing supply shortages (apartment complexes are motivated to amortize their LVT across as many tenants as possible - and can't price LVT into rents without hurting profit margins, due to land having inelastic supply and therefore land value being driven entirely by demand).
  - isthisthingon99 4y ago
    Ah this was very helpful to understand. Maybe after the next civil war...