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skew-aberration • today at 12:03 AM • 8 replies • view on HN

I think LVT does have a history in US, e.g Pittsburgh.

Also Georgism is 100% LVT -> A land tax alone has been the recommendation of many economists before and after George - From Smith, Riccardo, Mill to Friedman. Across classical, neoclassical, Keynesian, Austrian schools. If there's one thing economists can agree on, it's that land tax is better than income tax.


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jdjdndndbd • today at 12:13 AM

Random thought, would be it be good to extend land tax to use of all common public goods. E.g. radio frequencies, mining, water, CO2 pollution. Things you own, licensed or consume that take from the common good. Obviously this need constant tweaking E.g. as new tech makes different things valuable.

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pampas • today at 12:29 AM

The fact that economically right wing economists like Milton Friedman supported LVT is a great argument against landlord type labelling LVT as far-left and attempting to push the idea outside the Overton window. I think the only valid argument against is it is that a significant LVT would punish those who've worked for their wealth as they've already paid significant income tax. But there are plenty of ways to introduce it gradually. Other arguments boil down to vested interests when I dig into it.

moritzwarhier • today at 12:24 AM

It's the tax with the most positive impact AFAIK, especially when the other taxes are removed or at least adjusted accordingly.

But it probably is also a cooperation problem, thus we prefer a slow but accelerating apocalypse.

All these graduates need some value from their education after all, and if we reduce doing actively harmful things like the current tax system, others will be superior to us by transforming resources more quickly into waste.

Since the latter process is extremely profitable, and again, so many people have education in optimizing the resources->money->waste pipeline, it would be a luddite and anti-science thought to listen to the science and stop this.

Apart from that, there's a very common and profitable way of getting yield from people's everyday life while also rewarding them: cars.

Live somewhere, but everything you do requires a vehicle.

You'll see so many beautiful places.

But you also have to rant about the evil urban population that pays for your car, gas, roads, parking space and special subsidies.

It would be unlivable out there in the wilderness without this totally natural subsidization.

intrasight • today at 1:36 AM

> I think LVT does have a history in US, e.g Pittsburgh

Yeah, I looked at the map in the article and thought, wait a minute, why is Pennsylvania not colorcoded if Pittsburgh has a land value tax? So the map is only showing states that do? I didnt know there were any states that tax land. But do remember being confused when I moved to Pittsburgh by there being two separate taxes - for land and for property.

I also think that the pittsburgh example shows that LVT is meaningless. All homeowners care about here is their total real estate tax. How it is split between land and property nobody pays attention to.

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wahern • today at 12:28 AM

There was also a community in the deep south. And I once read a case study about a town that tried it in, IIRC, New Mexico.

Full LVT never works. It always ends up shot through with exceptions and loopholes and, in the case study, inducing corruption. And it's all predictable, too, if you know anything about taxation policy and American political culture. For full LVT you'd need to start from a blank slate, not just from a legal perspective but from people's expectations about property ownership.

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Aurornis • today at 2:39 AM

> If there's one thing economists can agree on, it's that land tax is better than income tax.

This is overstating the case by a lot. There is a lot of discussion about land value taxes being efficient for various means, but there are far fewer economists who would suggest that 100% LVT is a good idea.

It just wouldn’t be popular. It would instantly get filled with holes and exceptions and distorted until it tries to approximate something else.

Some of the high level economic features that 100% LVT advocates want, like forcing people out of their properties when they become too valuable for other uses, are actually extremely unpopular with people who actually live in homes. You would get a wave of cases where grandma got pushed out of her forever home because the LVT got too expensive and a developer bulldozed it to build a strip mall instead. Under the economic model this is a good thing because the land is being used for its best value, but people actually hate this stuff.

Land value taxes are also really bad at progressive taxation. The hardcore LVT people think this is a good thing because they talk about taxes as “disincentivizing extra work” but we all know that taxes have never stopped people from earning money. Going full LVT puts us in ridiculous situations where someone who earns $500K for a tech company but works remote from a luxurious house somewhere where land is not valued much will pay almost nothing in taxes, but a family with modest income who works a trades job (which generally requires being close to a population center) will have to live in some form of housing subject to very high taxation, therefore paying a lot in taxes.

If you still don’t see it, imagine the outrage when people realized that some billionaires are barely paying more in taxes than a family of four in a modest house in a city where land is valuable.

The more you read about Georgism you more you realize how it’s not as popular with economists as it’s portrayed. There is valuing in taxing land, but we already do that! The debates about eliminating other taxes and replacing them all with LVT is something else, and it’s not universally popular at all.

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mohamedkoubaa • today at 12:38 AM

You can say that land tax might be better than income tax but it's hard to argue that both land tax and income tax is better than just income tax. This is the biggest reason why new tax modalities are considered unworkable.

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dyauspitr • today at 12:28 AM

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