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Good overview. What's the imperative for a government to incentivize owners to invest in their property? Seems like it's fine if the owner invests in their prop
by xnx 1y ago
Good overview. What's the imperative for a government to incentivize owners to invest in their property? Seems like it's fine if the owner invests in their property or not.
- neilknowsbest 1y agoThe imperative for the government is to reduce the deadweight loss of under-improved land. Whether or not the owner chooses to improve should be their choice, but there is an opportunity cost to not improving. Absent a LVT, that opportunity cost is mostly born by the people who don't own the land, i.e. the coffee shop that _could_ have been there instead of whatever lower value use is there now. With a LVT, that opportunity cost falls more on the person who owns the land, i.e. the owner wants to keep their SFH in the urban neighborhood, but now pays a higher tax which reflects that under-improvement.
- xnx 1y agoThanks for using that term "deadweight loss". That gives me a concept to learn more about.
- Y_Y 1y agoIt makes GDP go up