3 ms·
You solve this by implementing the LVT as a small tax rebate on top of traditional property taxes. Something along the lines of an "Improvements Rebate" or what
by dwallin 2y ago
You solve this by implementing the LVT as a small tax rebate on top of traditional property taxes. Something along the lines of an "Improvements Rebate" or whatever polls best. This is much more politically palatable, you can pair it with a small increase in tax to some currently unpopular sector. Very slowly over time you can increase the property tax, while increasing the LVT rebate. Now those who might want to kill LVT now have a more complicated job of negotiating simultaneously to remove a popular benefit while adjusting overall tax rates, a much more complicated proposal.
LVT also has the drawback of being more complicated to calculate than property taxes, and therefore makes convincing constituents that it is being implemented fairly harder. When it is a negative (cost), this complexity makes it easy to attack, while a positive is more defendable (sure it's a tricky calculation, but it gives me money back in my pocket).