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Land value taxes don't discourage desirable behavior when raised. Property taxes might discourage construction but if land values are high enough then property
by pydry 5mo ago
Land value taxes don't discourage desirable behavior when raised.
Property taxes might discourage construction but if land values are high enough then property taxes approximate land value taxes.
Raising income tax on the other hand discourages working even when it is set very low. This is one which ought to be lowered if anything.
tl;dr it doesnt work the same way for every tax.
- cucumber3732842 5mo ago>Land value taxes don't discourage desirable behavior Are you serious? LVTs expressly incentivizes landlords to kick out "grandfathered in" developments and uses in favor of redevelopment and sale for that purpose. But those grandfathered in developments and uses are exactly what made the place valuable in the first place and you need some amount of them to remain.
- zozbot234 5mo agoRedevelopment often mitigates housing scarcity in general, including for existing residents. They may have to move to a slightly smaller apartment within a generally much improved area, which usually leaves them better off. This is especially true for LVT, which amounts to a decrease in property tax for the improvements to land.
- senordevnyc 5mo agoThey may have to move to a slightly smaller apartment within a generally much improved area, which usually leaves them better off. Good luck selling this to voters.
- pydry 5mo agoI mean, I guess if you're a NIMBY who wants to inhibit the construction of more affordable housing that's a bad thing.
- cucumber3732842 5mo agoNothing inhibits construction like creating a system where all the existing land owners stand to get taxed more if they allow development.
- pydry 5mo agoAnd the land value tax does the exact opposite of that. If you sit on an underdeveloped plot of land in a high value location your tax bill will exceed your rental income. The land is worthless to you. So you'll sell up to somebody who will make something of it.
- rileymat2 5mo agoAre there good sources on income tax discouraging working? My rudimentary google searches are mixed, between it being a disincentive, and forcing people to work more for the same income.