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https://en.wikipedia.org/wiki/Land_value_tax https://en.wikipedia.org/wiki/Land_value_tax ^^ This would ensure that nobody got wealthy from doing this type of
by crdoconnor 11y ago
https://en.wikipedia.org/wiki/Land_value_tax https://en.wikipedia.org/wiki/Land_value_tax
^^ This would ensure that nobody got wealthy from doing this type of thing, ever.
If you don't have a land value tax (or its cousin, property tax), the land value is still taxed, it's just that it's called rent instead. Instead of the stream of income ending up as a social security payment or building a school, it ends up bidding up the price of a Manhattan condo or buying a yacht.
- Spooky23 11y agoWhat's the difference between this and property tax? Commercial property rates are generally determined by rents.
- crdoconnor 11y agoProperty tax is assessed based upon on the value of the property, which is often in large part determined by the value of the land it is built upon. Same house in SF and the Midwest - the Midwest one is 5x cheaper. ~80% of the value of the house is the value of the land. LVT is a tax that is intended to tax 100% of the value of the land and 0% of the value of the property built upon it, so in theory the house in the midwest would cost the same as the one in SF, but the tax you'd pay to live in SF would be higher. Property tax would discourage this type of behavior (which is good). LVT would eliminate it entirely.