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.
> 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.
Alternatives like aggressive up zoning and development would benefit this cohort and be welcomed as well. It's very natural to welcome things that benefit you
About half might. But then another half will have dealt with actually moving a confused, possibly suffering from dementia, elderly person, managing all of the affairs (and forgetting to do some, changing health care insurance), creating an unnecessary multiyear fuck you in your life while trying to manage a job and a family, and the policy will get torched.
Allowing the elderly to stay where they are isn't just about protecting vulnerable boomers, it's about not being a problem for responsible people in the next generation. You could also be one of those no-contact assholes and never have to deal with your parents when they get screwed by displacement, land value tax away.
I suspect you're right, in the same way that a lot younger people really like any ideas like blanket student loan forgiveness because they have student loans and are receptive to any idea that involves someone else paying for them.
Like most ideas in this category, they become less popular as people grow older and build up some of their own assets. I would expect popularity of this idea to fall of sharply around the age that people start buying a home and see their property tax bill go up.
Practically, this makes it a complete dead end. Much to my lament in every election, younger people don't vote as much as they post online and respond to polls. Older people don't post online and respond to polls as much as they actually go out and vote.
This is why the Georgism thing always seems popular on niche internet boards, but would never get anywhere in a real political system.
skew-aberration · · focus · HN ↗
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.
Aurornis · · focus · HN ↗
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.
tonyedgecombe · · focus · HN ↗
I suspect a lot of younger people would welcome it. Especially in areas where there is a real shortage of family homes.
arwineap · · focus · HN ↗
dnautics · · focus · HN ↗
Allowing the elderly to stay where they are isn't just about protecting vulnerable boomers, it's about not being a problem for responsible people in the next generation. You could also be one of those no-contact assholes and never have to deal with your parents when they get screwed by displacement, land value tax away.
Aurornis · · focus · HN ↗
Like most ideas in this category, they become less popular as people grow older and build up some of their own assets. I would expect popularity of this idea to fall of sharply around the age that people start buying a home and see their property tax bill go up.
Practically, this makes it a complete dead end. Much to my lament in every election, younger people don't vote as much as they post online and respond to polls. Older people don't post online and respond to polls as much as they actually go out and vote.
This is why the Georgism thing always seems popular on niche internet boards, but would never get anywhere in a real political system.