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> You would end up with people paying property tax for their gym memberships and apartment rentals. Economic theory on tax incidence says otherwise. Land, bein
by sooheon 2y ago
> You would end up with people paying property tax for their gym memberships and apartment rentals.
Economic theory on tax incidence says otherwise. Land, being inelastic, takes the tax burden. Land tax cannot be passed on to tenants or businesses.
- s1artibartfast 2y ago>Land tax cannot be passed on to tenants or businesses. Correct, and the parent post is proposing taxes on things other than the land itself. If I sell rights to hike across my private property, or make a contract with nature conservancy not to chop down my trees, I still have the land (and pay taxes). To make the nature conservancy pay property taxes as well for contract rights they own is just like having a tenant pay for private use of my house, or a consumer for a shared access right to my gym.
- deleted 2y ago[deleted]
- sooheon 2y agoGotcha. A tax on the land itself will sort out these underutilization incentives.