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I think it's a bit different: property tax taxes the actual property that is located on the piece of land, i.e. single family home, for its current value. Land

I think it's a bit different: property tax taxes the actual property that is located on the piece of land, i.e. single family home, for its current value. Land value tax works differently: tax authorities ask themselves a question: "what is the most profitable thing one could possibly build on that land?", and they tax you based on that. Which means that if you build a single family home in the neighborhood of 7-stories apartment buildings you will be taxed as if you owned an apartment building. And the only way for you to be able to afford those taxes is to actually build 7-stories apartment building there. EDIT: I know I'm simplifying a bit. The actual tax laws might not be worded the way I described it, but the net effect is exactly this: you are taxed on the potential resale value of your land, which is highly dependent on "what's the most valuable thing that can be built here?" question.

loeg 3y ago
No, you've completely invented a system that is not how land value taxes work.
- firejake308 3y ago
  The problem is that it could work that way, or it might not. It depends on what tax rate the government sets, which could change depending on the time, the economy, and the current administration. If the government guesses the magic rate that discourages speculation without discouraging other relatively low-value businesses that society still needs to function, then yes, that's a great system. However, I'd the government overshoots or undershoots, then the land value tax doesn actually fix anything.
  - pishpash 3y ago
    Property tax = you do not own the land, the government does and leases it to you. Setting the rate to the highest rate is stupid because it means the government confiscates all the land and leases it only to e.g. casinos and you get nothing but casinos.
pishpash 3y ago
Where does the tax money go? If it's redistributed back to everyone including those who rent then that's just land redistribution.

loeg 3y ago

No, you've completely invented a system that is not how land value taxes work.

firejake308 3y ago
The problem is that it could work that way, or it might not. It depends on what tax rate the government sets, which could change depending on the time, the economy, and the current administration. If the government guesses the magic rate that discourages speculation without discouraging other relatively low-value businesses that society still needs to function, then yes, that's a great system. However, I'd the government overshoots or undershoots, then the land value tax doesn actually fix anything.
- pishpash 3y ago
  Property tax = you do not own the land, the government does and leases it to you. Setting the rate to the highest rate is stupid because it means the government confiscates all the land and leases it only to e.g. casinos and you get nothing but casinos.

pishpash 3y ago

Where does the tax money go? If it's redistributed back to everyone including those who rent then that's just land redistribution.