4 ms·
Supply would absolutely help with the problem, but it's not sufficient. To discourage speculation, governments should impose land value tax, but not property t
by kiba 3y ago
Supply would absolutely help with the problem, but it's not sufficient.
To discourage speculation, governments should impose land value tax, but not property tax, to encourage efficient use of land. You'll also need to pair with other reform, like changing how zoning should be done, how transportation is planned, and so forth.
- galangalalgol 3y agoLand value tax has some issues as well. The zoning reform might be able to dix them, but only with some micromanaging I think. If we want walkable areas, that means multi-use zoning. Not all land uses have the same roi, so if you set the land value relative to the value that comes from using it for the highest roi case, say case A, then no one will use land for case B or C. So to take it to hyperbole, you'd end up with blocks of liquor stores and no housing, or all housing and no grocers. It is a complicated problem, and the solution will also be complicated.