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A %12 tax is relatively mild, but you're right that a transition to a tax system that taxes land more and taxes everything else less will screw over existing in
by Hammershaft 3y ago
A %12 tax is relatively mild, but you're right that a transition to a tax system that taxes land more and taxes everything else less will screw over existing investors of underutilized land.
Another pain point is that homeowners who have been sitting on lots that are highly desirable and infilled will be taxed considerably more. This is in the long run a major benefit of the LTV: that underutilized land is put to productive use. That doesn't mean the political optics won't be difficult to square.
- robocat 3y ago> A %12 tax is relatively mild Strong disagree. 12% is halving value in 5 years. A tax that steals half of the asset over 5 years is not "mild". The tax makes a mockery of any reasonable multiyear plans. It's okay to say screw retirement savings, but be honest exactly what is being said. Investing often talks about percentage points because small differences in returns matter. 12% is two orders of magnitude bigger - it's significant. 1% really matters - which you would know if you were involved with finance or had a variable rate mortgage.
- Hammershaft 3y agoNote the word relative. The land value tax has been championed by economists across the political sprectrum as a single tax to displace other taxes with. The entire movement of georgism advocates for a land value tax approaching %100.
- TheCleric 3y ago> will screw over existing investors of underutilized land. That's a feature, not a bug.
- Hammershaft 3y agoYeah, I absolutely agree. It's just that it makes georgism politically difficult, as benefits are diffused across a wider population and the negatives are intensely focused on a smaller population.