The Single Tax - Land Value Tax (LVT)

Look up the meaning of "sovereignty". The state own the land. How they apportion the land within is another matter. Let us say "title" and not ownership to clarify and simplify matters for you. Geoism DOES NOT ADVOCATE state title holding of land. Anyone with half a brain can see that.

Yes, why don't you look up the various meanings of sovereignty. Invoking the generic, unqualified "title" might clarify and simplify matters for you, as you might feel that it fits best with your anti-private-landownership paradigm. But while you're busy looking up meanings, look up the various meanings of title, among them "allodial title". Anyone with half a brain (assuming it is actually engaged) can see clearly that LVT proponents advocate the abolition of allodial titles to individuals -- individual sovereignty with respect to land -- and the absorption of all these titles by the State (AKA the taxing jurisdiction). These titles wouldn't then be a stack of titles, but would become a single title, manifested only as a piece of legislation.

The philosophical claim that LVT "reclaims community created wealth" (a collectivist delusion) is the rationale for a state monopoly on landownership -- allodial titles to land that is forever conditionally rented, but never sold. Your attempt to torture generic definitions or to presume that the state is the de facto owner of land in all cases are all belied by both the exceptions to the rule that are now reality, as well as the underlying fundamentals of what constitutes both sovereignty and ownership by whatever degree.

One of the prime points is that Geoism reclaims community created wealth that soaks into the land crystallizing as land values, using this wealth for community purposes - the land value was NOT created by the landowner.

Irrelevant geo-gibberish, the koolaid you drank and would like for the rest of the world to drink. The tractor I inherited from my father was not created by me or my father; not the materials that comprise it nor the capital or labor required to shape it into its current form and function. Likewise, its market value was not created by either of us, even though my father helped to shape its TRANSIENT market price once upon a time when he bought it. I am now the owner of that tractor, and can dispose of it as I please. I can destroy it, use it, store it away, or even charge economic rent for it. I did not "earn" that tractor, nor is it a product of my labor, and the fact that it is not for sale does not mean that it does not have market value which "the community", not me, created. And yet I am the owner of that tractor, and "the community" is entitled to NOTHING. The same principles apply to land, regardless of the owner, public or private. The fact that the "market value" was not created by the owner is IRRELEVANT, just as the fact that individual contributions to value by others, public or private, are wholly incidental, and CREATES NO ENTITLEMENT to any of them, collectively or individually. There is, as such, nothing to "reclaim", as there was no valid "claim" to begin with.

Further delving into the word-machinations of LVT-la-la-land, even saying that land value is not created by the landowner is false, even in an LVT framework. Raw land itself is not created by anyone, but your focus is on "community created value". Anyone who demonstrates a willingness to sell or pay for a thing, including the owner, or whatever entity has the power to place a thing on the market in the first place, plays a decisive role in shaping/creating its market value. That includes the owner (even if that owner is the State) which may not have paid or produced anything in the process of acquisition. However, the fact that multiple parties were involved does not create an entitlement for any participants outside the actual buyer and seller, as market value is not the collectivist phenomenon you would like it to be.

As for government's role, government is a SERVANT -- not a "provider" of anything. There is NO SUCH THING as "public funding". All infrastructure is PRIVATELY funded, not for profit, and not necessarily paid for by those who benefit therefrom. For example, if infrastructure was funded exclusively from tariffs on foreign imports, those who paid a higher price for those imports would fund all infrastructure. However, the direct benefit enjoyed by those purchasing foreign goods would be in the goods purchased ALONE. The fact that the tariffs they paid went to fund infrastructure is incidental, and would not entitle the source of that funding (purchasers of foreign goods) to any special privileges or benefits. Likewise the "not-for-profit" government SERVANT, charged with task of levying and collecting such taxes, as delegated to it BY ITS MASTERS (the actual people), are not on a Board of Land Directors, trying to "reclaim" something for which I argue no valid claim exists in a free market.

Economists slice and dice factors of production for their convenience, but just as e=mc2 means that mass and energy are different manifestations of the same thing, so land, capital and labor are all different manifestations of the same thing, as one can be converted into another. I don't care how LVT proponents rationalize the treatment of land as something special and apart from other forms of capital, any more than I give two shits about those who see money as being something mystical and special, apart from all other commodities, which makes it somehow immune from laws of economics as dictated by reality, and not some theory that fails to adequately describe it.

As a matter of function, everything of value that can be exchanged is a form of capital. That includes both labor and land. A dynamic variable applies to value as a function of the scarcity of a given type of land, capital or labor, but that is not a rationale for collective ownership. Likewise, there is no "liberty deprivation" on anyone's part that justifies a claim for anything that ought to be "reclaimed" on their behalf.

IF government outlawed usury of any kind for lands, outlawing the charging of economic rents by anyone of others, public or private, and also outlawed speculation (withholding of lands from use for any "unreasonable" period of time), two planks of the "Geoist Dilemma" they pretend to be solving would vanish. The enjoyment of economic rents would belong (and properly and rightly so in my mind) to those who enjoyed and benefited from them directly -- and the collectivist socialistic parasites who want to "reclaim value" that is not theirs can go stuff themselves. The only issue remaining would be the most proper source of government funding.

Henry George argued, with his little theorem, that under ideal conditions, aggregate spending by government will be equal to aggregate rent based on land value. Not once, however, is the necessity or requirement of such spending on the part of government questioned or challenged for its validity. The unspoken axiom is, "Governments spend, therefore they must."

As to the "funding" problem, the only taxes I recognize as morally valid - and they would only work in a free, perfectly competive market with sound competing currencies - are tariffs and other taxes on foreigners and other entities acting as a matter of privilege, and not right. "Then are the children free." No tax on sovereign individuals - the "children of the kingdom", who are free to trade with one another without interference. Only "privileged outsiders" (regardless of location) pay -- and yet have ZERO CLAIM on anything they funded for the privilege of their existence. Congress can have its way with privileged entities (right down to LVT or anything else), and the free market would serve to keep its revenues in check. This is because the more Congress abuses the only "privileged" entities it may tax, the more advantages automatically inure to the benefit of those acting (COMPETING) as a matter of unfettered, untrammeled right - which congress may not ever tax (my normative, of course).

Socially created wealth is...

...a myth? ...a misnomer? ...evidence of socialist theft?
 
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Geoism works in real life

The philosophical claim that LVT "reclaims community created wealth" (a collectivist delusion) is the rationale for a state monopoly on landownership
  1. LVT "reclaims community created wealth". Get used to it. It does.

  2. Again, if it is repeated often enough it might sink in...Geoism DOES NOT advocate state owership of land. Title can be privately exchanged as before with no change to the system.

  3. One of the prime points is that Geoism reclaims community created wealth that soaks into the land crystallizing as land values, using this wealth for community purposes - the land value was NOT created by the landowner. This is economic FACT!! Any economist with half a brain will tell you that. The land values did not miraculously drop in from the sky. Get used to it. Accept it as if you do not you are deluding yourself and going around in ever confused circles.

  4. Your muddled brain keeps barking on about Marxism and socialism and other strange things. Geoism is none of those, but can fit into any ism you like. Name your ism and it will fit -maybe not North Korea.

  5. There is socially created wealth and privately created wealth. FACT!! You do not understand this. Just accept it.

  6. Geoism sets an individual free. No one steals his income, his savings, his inheritance.

  7. I still see selective amnesia set in again when it comes to Hong Kong.

  8. Geoism is pragmatic. It works with working examples all over the world. It works because it is backed up by sound economic theory. You have difficulty with the latter and put your head in the sand over the former.

"Solving the land question means the solving of all social questions…
Possession of land by people who do not use it is immoral - just
like the possession of slaves."
- Leo Tolstoy
 
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LVT "reclaims community created wealth". Get used to it. It does.

Get used to a lot of people never getting used to it. It's a mindless reassertion of a religious tenet.

Again, if it is repeated often enough it might sink in...Geoism DOES NOT advocate state owership of land. Title can be privately exchanged as before with no change to the system.

Constant repetition might serve as self-reinforcement and affirmation for you, but it won't make it true. Conflate conditional "rental" title with actual ownership all you want. The imposition of a regressive ad valorem tax (no deterministic relationship to income or ability to pay, but only on others' willingness to pay more) as a condition of "holding", not ownership makes the state the ultimate owner, and the land a rental only.

One of the prime points is that Geoism reclaims community created wealth that soaks into the land crystallizing as land values, using this wealth for community purposes - the land value was NOT created by the landowner. This is economic FACT!! Any economist with half a brain will tell you that. Get used to it. Accept it as if you do not you are deluding yourself and going around in ever confused circles.

Again, mindless repetition.

Your muddled brain keeps barking on about Marxism and socialism and other strange things. Geoism is none of those, but can fit into any ism you like. Name your ism and it will fit -maybe not North Korea. There is socially created wealth and privately created wealth. FACT!! You do not understand this. Just accept it.

Geoism is just another form of socialism. Making it a foundational underpinning to any other ism won't alter that fact. And you can stuff your notions of 'socially created wealth'. I'm not One with the Geoist Borg. Go assimilate someone else.

Geoism sets an individual free.

No, it binds everyone to perpetually renting something fundamental to life itself from the State, and with a straight face declares you "free" to pay as little or much as you would like, based on the governing assumption that so long as someone else covets your location, you are "free" to pay more and stay or just as "free" to move the on and make way to a higher bidder.

No one steals his income, his savings, his inheritance.

Of course they do. Pretty much all three are stolen -- siphoned away under the rationale of Socially Created Wealth Reclamation.

I still see selective amnesia set in again when it comes to Hong Kong.

Not amnesia so much as not giving a shit about Hong Kong and its concrete jungles I have lived in. I never claimed that economies could not function or that people would not survive in spite of LVT. Hell, we're quasi-surviving with a Fed, a deliberately debased currency, and all kinds of nasty human-enslaving shit that is in place now. One more mechanism for slavery-in-the-name-of-liberty won't destroy us either. You can stuff Hong Kong - just as Roy can stuff Somalia as his second-favorite non-sequitur.

Geoism is pragmatic. It works with working examples all over the world. It works because it is backed up by sound economic theory. You have difficulty with the latter and put your head in the sand over the former.

Thanks for the Geoist propaganda brochure. ::: tosses into waste bin with all the other SPAM, gibberish and nonsense :::
 
Mr Douglas,

You are a very confused person, knowing little about basic economics. Many quotes from top, respected, economic top experts have demolished your quarter-baking theories. You constantly tell yourself lies and believe them being clearly detached from reality. Your idea of freedom is clearly one of greed and perceived self-interest.

It is like communicating with a stubborn child.

It is best for just accept the Geoist line, even though you can't understand something so simple.
 
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Mr Douglas,

You are a very confused person, knowing little about basic economics. Many quotes from top, respected, economic top experts have demolished your quarter-baking theories. You constantly tell yourself lies and believe them being clearly detached from reality. Your idea of freedom is clearly one of greed and perceived self-interest.

It is like communicating with a stubborn child.

It is best for just accept the Geoist line, even though you can't understand something so simple.

Not really. Not at all. Steven makes the most sense and is the most honest in this debate.

Your claim that taxing land away from an individual sets them free is just stupid. People are not nearly as stupid as you think they are.

Allodial title to property, all property, is what sets us free.
 
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Not amnesia so much as not giving a shit about Hong Kong and its concrete jungles I have lived in.

Hong Kong:
426 sq mi
Popn: 7 million.
40% of the land area is reserved as country parks and nature reserves.

NYC:
468 sq mi
Popn: 8.2 million

HK is better off.

I see you care not of Hong Kong's highly success LVT system as selective amnesia is still a condition you have not yet overcome.
 
Geoism works in the real world

Not really. Not at all. Steven makes the most sense and is the most honest in this debate.
Mr Douglas suffers from compulsive lying and selective amnesia. Roy L was right.
Your claim that taxing land away from an individual sets them free is just stupid.
A strange, confused, statement. No one is taking land away from anyone or proposing that. It was very clear what was put across. Geoism works in the real world. Unlike your confused notions of what freedom is, it works in reality. The theory is sound and practical implementations a success.

Your idea of freedom is being a parasite on the rest of the community. Keeping community created wealth for yourself - in short, stealing.
 
Mr Douglas suffers from compulsive lying and selective amnesia. Roy L was right.

A strange, confused, statement. No one is taking land away from anyone or proposing that. It was very clear what was put across. Geoism works in the real world. Unlike your confused notions of what freedom is, it works in reality. The theory is sound and practical implementations a success.

Your idea of freedom is being a parasite on the rest of the community. Keeping community created wealth for yourself - in short, stealing.
No, your idea of big government socialism sucks. Move to Hong Kong if you think it is so great.
 
Geoism gives FREEDOM!

No, your idea of big government socialism sucks. Move to Hong Kong if you think it is so great.

Once again you have not comprehended a thing. You are very confused. No one mentioned socialism, only the confused like you. Geoism fits into any extreme right-wing warped ism you like. Which one do you want? Geoism rolls back state interference as it is largely self controlling. Geoism gives FREEDOM.

Another dismissive comment on Hong Kong as it uses a form of LVT giving it the freest economic system in the world, and one of the most dynamic economies to boot. Either selective amnesia or dismissive comments on Hong Kong, Singapore and Taiwan is evident.

You do not know what freedom is. Your greed and self-interest gets the better of you. You use freedom as a false shield to hide your greed and wanting to steal commonly created wealth, and contempt for your fellow man.
 
HK is better off.

I see you care not of Hong Kong's highly success LVT system...

Well, since you insist, let's address your extremely naive Post Hoc fallacy, wherein you want correlation to imply causation. Not surprising, as it's usually socialist leaning leftists who want to credit government with everything good under the sun, and especially as an actual "cause" of economic prosperity. LVT proponents are generally wont to think of government as a "provider", rather than simply a facilitator, protector of rights of individuals (regardless of their prosperity or "productivity" - nasty LVT bastards passing judgments on "contributions"), with government little more than a market-neutral catalyst - not a provider of anything beyond that.

Part of your fallacy comes from the fact that you are disregarding what actually caused HK to be prosperous in the first place, long before LVT was implemented. You also don't have a separate but identical Hong Kong without LVT in place with which to even do an empirical comparison, to see if HK would indeed be better or worse off without LVT. Furthermore, Hong Kong is far from the "average community", and did not get where it is today by virtue of LVT.

Location, location, location.
As a major port of call, Hong Kong, like Singapore, London, Tokyo and New York, also happens to be a major international financial hub (certainly China's largest) with enormous financial activity based on what is happening in OTHER PARTS OF THE WORLD, including the 6th largest stock exchange in the world, making Hong Kong entirely insulated from most of the "real world", an exception to the real world rule, as it operates in a relative vacuum.

In 2009, Hong Kong raised 22 percent of worldwide initial public offering (IPO) capital, becoming the largest center of IPOs in the world. What happens to Hong Kong if its stock market crashes? Would you be honest enough to blame LVT in the same way you're crediting it now for all of Hong Kong's apparent success?

Your invocation of HK's LVT as a model for every "community" to follow is silliness at best, unless you're also suggesting that all communities in the world do the logically and physically impossible


  • Become a major financial hub.
  • Become a major shipping port with a major international airport.
  • Restrict available land leases so that it affects the artificial scarcity and therefore value, leaving fully 95% of the available land undeveloped.
  • Be so compact in area, large in population, and vertical in property development that public infrastructure required for such a small per capita area is relatively inexpensive.
Also, consider the following:

Despite being one of the world's richest economies, the Gini Coefficient indicates that the wealth gap continues to widen in Hong Kong. As of 2006 Hong Kong's measurement is at 53.3, which means the difference between the rich and poor is far greater than that of the mainland China.

And consider this as well:

By restricting the sale of land leases, the Hong Kong government keeps the price of land at what some would say are artificially high prices and this allows the government to support public spending with a low tax rate.

Prior to 1997, the history was Hong Kong Island was ceded in perpetuity to the UK in recompense for losses endured in the Opium War, a token grant of a watering hole. It wasn’t until about 50 years later that the UK got a 99 year lease on Kowloon and the new territories, which is what we call Hong Kong today. So we are talking about an Island that the UK owned, and the mass of land that the UK leased from China. Yes, there was no ability really to “own” private real estate, although some did, because the UK auctioned off property and subleases, which in any event never amounted to more than 5% of modern Hong Kong.

Or in other words, 95% of Hong Kong is still undeveloped.

And the highest concentration of people in the world. Which makes you wander about “overpopulation” talk, but that is another discussion. (Singapore is free and independent, and there too only about 5% of the land is developed and the govt owns the land. Maybe it's a Chinese thing.)

So there was never really any need or point in private ownership of land in Hong Kong, and in any case with the communist takeover it is out of the question, although China is letting Hong Kong continue its gig until 2047, when Hong Kong will take over China and Taiwan.

Britain gave up its ownership of Hong Kong Island in 1997 to China since it is rather worthless without Kowloon, except for the CofE cathedral, likely because its relations with Rome are a template the Chinese Communist leaders find admirable.

So real state ownership is sui generis, not indicative of anything on the Kowloon peninsula, and all makes for unusual circumstances.

The anarchists missed the fact that, until the Communists took over, within the relative free markets of Hong Kong, there was ALSO a 100 plus year continuous total anarchy experiment called Kowloon city. No need to guess how things would work, or surmise we need A New Man or some certain elements dead...

...Kowloon City was anarchy in action, no state, no defended borders, quite profitable, peaceful, and too short lived.

Like all free places, Kowloon City was accidental. When China leased Kowloon to Hong Kong, the China maintained a garrison (Kowloon City) for purposes of some security. When the Qing fell in1911, Kowloon City was abandoned, although still Qing property. It was a stateless zone. It began populating with people who preferred to live stateless. When the communists took over in 1949, Taiwan claimed it as theirs. Sticky business, what. So the british just took a hands off policy, as in “it’s not ours.” By some legal fiction is belong to Taiwan, located in Hong Kong, which had a 99 year lease payable to the Red Chinese. Accidental, in the theological sense. Unique in history and place.

Kowloon City had a bad reputation, but that is largely because it had no PR. A blond English woman could move in free of fear, and did for 20 years.

It was totally voluntary society. Anyone could leave, and in fact many worked outside the city. But no officials from the outside were allowed in. No cops.

It was not allowed to expand out to accommodate all the people who wanted to live in anarchy, so it built up. Straight up. When I first saw Bladerunner, the city Ridley Scott portrayed looked very familiar. And it accommodated the extreme of humanity in one place. No need for a New Man, no need for enlightened child rearing procedures, just raw freedom.

This is a better thing to note about Hong Kong, and to study, with a view to what really happens when people are free. We have to rely on histories now, because before China would take over Hong Kong, it required Kowloon City be leveled. It is now a lovely park.

The century long experiment in anarchy came to and end, by state decree.

So much for HK as a shining example of LVT success - consider it thoroughly destroyed. N/A -- NOT APPLICABLE.
 
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Once again you have not comprehended a thing. You are very confused. No one mentioned socialism, only the confused like you. Geoism fits into any extreme right-wing warped ism you like. Which one do you want? Geoism rolls back state interference as it is largely self controlling. Geoism gives FREEDOM.

Another dismissive comment on Hong Kong as it uses a form of LVT giving it the freest economic system in the world, and one of the most dynamic economies to boot. Either selective amnesia or dismissive comments on Hong Kong, Singapore and Taiwan is evident.

You do not know what freedom is. Your greed and self-interest gets the better of you. You use freedom as a false shield to hide your greed and wanting to steal commonly created wealth, and contempt for your fellow man.

Baloney. I understand what you are saying, I'm just not buying into your bullshit. "40% of the land area is reserved as country parks and nature reserves." <- Socialism. Pack the people in the cities, tax them on their land, hoard the rest of it for the common good determined by rulers. That is socialism to me. Commonly created wealth ... LOL ... what a joke of a concept. Of course I am self-interested and of course I am greedy. The entire world is made up of greedy self-interested people. That is why individuals create wealth from the resources of the Earth. That is why they should be allowed to own as much land as they can manage. Geo philosophy is just dumb socialist collectivism that you are trying to paint with the gibberish freedom brush.

War is not really Peace. Tyranny is not really Liberty. Collectivism is not really Individualism. Geoism does not deliver freedom for Individuals.

Allodial title to land and all other possessions delivers freedom.
 
Sir, David Pilling is critical of Hong Kong’s land leasing system (“Hong Kong’s land system that time forgot”, FT Comment, March 10). While there may be room for greater transparency and other improvement, I submit that the fundamental idea is sound. Government should be financed from land rents.

Mr Pilling writes, for example: “By this means, Hong Kong has conjured a cheap and gleaming transport system seemingly out of nothing.” Precisely. A transport system makes land more valuable so, if it is worth building, it can and should be paid for out of the increased land rents it creates.

If “Hemlock” compares Hong Kong’s property tycoons to “feudal lords granted the right to gather tax from the peasants”, their equivalents in New York and London can be called feudal lords collecting tax from the peasants without even having to forward much of their revenue to the sovereign, who must therefore levy other taxes on the peasants.

A classic statement of the case for land value taxation is – instead of paying rent to a landlord and tax to the state, why not pay rent to the state, and no taxes? Hong Kong comes closer to this ideal than most places.

Nicholas D. Rosen,
Arlington, VA, US
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Hong Kong; An exemplar for Land Value Taxation

Good article in Metropolis.com on effect of Hong Kong’s tax system, a de facto Land Value Tax on its retail trade and city and architecture design. The city state owns all land directly so leaseholders must pay an annual rent – but few other taxes

I see Hong Kong as a model of smart growth management and land use planning. It’s a city were policy dictates that development must concentrate on only 25% of the land area, with the remaining 75% preserved as open space. This policy ensures that the region’s lush green spaces remain intact. It also maintains scarcity and high land values in developable areas. This is crucial to the local government because its primary source of income is land leasing.
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By Neville Bennett

We need a more efficient and equitable tax system compatible with economic growth and productivity.

In our mobile society it seems reasonable, a priori, to move taxation from relatively mobile bases like income and profits to relatively immobile bases like land, rent and consumption.

Such a switch rewards the enterprising.

A land tax could be a necessary part of a better system. My space limitation means that the argument will lack convincing data, and I have had to excise counter-arguments.

I also recognize that its implementation would be fraught with difficulty.

My purpose is to sketch an idea at a time when Government is reviewing tax.

I saw the merits of the tax while working in Hong Kong and seeing the benefit of free-trade, a small state and low taxation. I taught Japanese economic history and became convinced that Japan's modern economic growth was founded on a vibrant agriculture and a land tax. Ideologically I respected increasingly the nineteenth century liberal ideology of Mill, Ricardo, Bentham, Cobden, Bright, Smith, and Macaulay. They seem timeless.

I give a typical quote from Macaulay about "pests to society" ....a prying, meddlesome government which intrudes itself into every part of human life, and which thinks it can do everything better than anyone can do for himself"
or J. S. Mill warning against "the great evil of adding unnecessarily to the power of the state."

Mill insisted on a land tax because "the land of every country belongs to the people of that country."

Ideally the state would own all land and lease it out, getting the unearned component of price rises. Hong Kong adopted Mill's recommendation.

Henry George also advocated a land tax in "Progress and Poverty"(1879). George noticed in California that poverty increased as land prices increased. He advocated a tax on land value but not on improvements, as that would destroy the natural right to the fruit of labour, and, "act as the spoliation of industry and thrift."

The tax suggested is a land value tax (LVT). It taxes all land, urban and rural (except parks and reserves). It does not tax improvements.

Revenue

LVT is excellent source of government revenue. It can raise substantial sums without damaging the economy.

Hong Kong raises about 38% of its revenue from a land tax. It is usually in surplus, and imposes very low taxes in other areas. W

hen I lived there, the threshold on income tax was very high and the maximum was about 12% (by memory). Singapore and Taiwan also operate land taxes. It broadens the tax base and produces very predictable returns in contrast to more volatile taxes made on profits.

The supply of land is very inelastic, and its value does not fluctuate so much if the speculative element is removed. It is also easy to collect. The authorities need only registers of owners and a valuation of the land. It is hard to evade, because land cannot be hidden, nor transferred into tax havens abroad. The cost of collecting some taxes is very high, but a land tax is a low cost tax.

Because LVT is cheap to impose and a reliable revenue raiser, it can reduce the need for other taxes. A LVT mitigates the case for a capital gains tax.

A land tax ...

" ... reduces speculation because it imposes a holding cost. This should have the effect of returning land to productive use.

Wikipedia suggests it reduces urban sprawl because it reduces the number of vacant lots in a city. An example is Harrisburg, Pennsylvania, which has used a land tax since 1975. " Deters bubbles.

The existing structure in New Zealand encourages speculation. Land gets bid up to levels which predicate very low yields. The boom and bust scenario is very damaging to the economy. A land tax is a factor for stability.

... is easy to collect. The authorities need only registers of owners and a valuation of the land. It is hard to evade, because land cannot be hidden , nor transferred into tax havens abroad. The costs of collecting some taxes is very high, but a land tax is a low cost tax.

... is so cheap to impose, so reliable in producing the goods, that it can reduce the need for other taxes.

... diverts investment from unproductive property activities. These are directed in large part to making capital gains or rent.

"Rent seeking" is disapproved of by economists because it extracts uncompensated value from others without making contributions to productivity. Rent is not payment for a lease, in this example, but derives from Adam Smith's division of income into wages, profit and rent.

... would lower the price of land. An ideal rate forces land to be used productively, and profitably. This will lead to a lower value because the speculative component of the land's value is removed. The speculators would reduce their land holdings and land would be used only for economic activities. Cheaper land would allow more able farmers to enter the industry. (more later)

... lower land values should exert downward pressure on urban rents. If tenants are already paying a high proportion of their disposable income on rent, a low rent would, others things being equal, have the effect of increasing their net wages. Higher wages could stimulate both higher saving and consumption.

... improves the equity in a taxation system. Some people, like children, students and beneficiaries, generally have little wealth and land. A land tax would affect only the better off in those categories.

... encourages investment and productivity. At present a land owner is taxed only on income (less expenses) arising from land. There is no particular incentive to use land productively. Land- owners, including life-stylers, can merely lightly stock their land and wait for capital gains. Capital gains in the South Island, 1990-2007 averaged 17% a year (NBR May1).

... induces efficient sized units. New Zealand's farmers often hold more land than they need for production. A surplus is attractive because increased size increases capital gain. A land tax encourages greater intensity of farming, with more labour and capital per unit. It frees up land for new entrants.

... encourages improvements in order to maximize returns.

Conclusion

It is inefficient and inequitable to avoid taxing land. Land taxes are avoided, however, by political systems which have a large landed interest.

In the UK it was sought by the Liberal party, with powerful advocates like Lloyd George and Winston Churchill, but would never have passed through the self-interested House of Lords.

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The idea that LVT is the least-worst tax is not idle economic theory, Hong Kong for example has a feudal land system and the government derives the bulk of its income from leases, which is why they can keep their rate of income/corporation tax to a flat 20%. Stephen Reed, the Mayor of Harrisburg, who introduced LVT in 1982, has been continually re-elected ever since.

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Baloney. I understand what you are saying, I'm just not buying into your bullshit. "40% of the land area is reserved as country parks and nature reserves." <- Socialism. Pack the people in the cities, tax them on their land, hoard the rest of it for the common good determined by rulers. That is socialism to me.

You have strange idea of socialism.

Commonly created wealth ... LOL ... what a joke of a concept.

Land values never came for the sky. Economic activity by the community created them. You have been told this. If you can't understand this just accept it.

War is not really Peace. Tyranny is not really Liberty. Collectivism is not really Individualism. Geoism does not deliver freedom for Individuals.

Your confusion is abundantly clear.

Allodial title to land and all other possessions delivers freedom.

But the values soaked into the land created by the community gets reclaimed. Otherwise you are freeloading.
 
Told you you were fixated on production.
You can call being willing to know the fact that a rightful claim to a share of production only arises from a commensurate contribution to production being "fixated," if you like.
How, exactly, is that circular, question-begging question relevant to anyone but you?
It is neither circular nor question begging, and far from being irrelevant, it identifies the central issue: the non-contributory nature of the landowner's participation in economic activity. It is simply a question that you cannot answer; and as you are aware of the fact that your inability to answer it proves that your beliefs are false and evil, you have to find some way to erase it from your consciousness.
Aside from your usual fact-muddling religious tenet about the Government/Community/Nature Collectivist Triad that you want to speak for (do you cross yourself whenever you refer to it?),
I have identified the relevant self-evident and indisputable facts of objective physical reality. You have already realized that those facts prove your beliefs are false and evil, so you have to refuse to know them.
do you really see yourself as on some kind of leftist gubmint committee that sits around and tries to figure out how to "aid production"?
No, I am the individual who sits around identifying the relevant self-evident and indisputable facts of objective physical reality and their inescapable logical implications that prove your beliefs are false and evil.
"...millions of human sacrifices on the altar of Greed..." indeed. ::: snicker snicker :::
You are laughing at the annual slaughter of many millions of innocent human beings. That is normal, routine and expected for servants of the greatest evil that has ever existed.
Say, that reminds me - what do you think of the nifty image I made for you?
Did you imagine it could persuade me that you are more than maximally dishonest and evil?
 
Question for Roy...

I personally acknowledge that there is a land question...that there can be and most likely is a mal-distribution of land which leads to economic privilege or servitude. To what extent this scales and effects the general economy, I don't know. What are the best solutions? I don't know.

But what would stop a land-tax from being inflationary? eg... Say there is a primitive economy which is dominated by agriculture. The vast majority of land is held by a few landowners and they are able to charge excess rent for their control. If say the landlord is charged x more per acre in taxes...what is to prevent the landowner from raising his rent (which could be indirect as a form of product markup) by that same amount? So landbaron x gets charged 50k a year in taxes...what is to prevent them from merely raising their prices to recapture this 50k?

If this was the case...then the landbaron could care less about property taxes because he can just pass it on to the consumer/renter. In fact those hurt most might those who acquire land for personal property (like homes) and can not pass on the cost. Granted you do advocate an exemption, but it still seems to me that big business would game a land tax and the public could end up paying the bill.
 
But what would stop a land-tax from being inflationary?
The fact that inflation is a monetary phenomenon on which LVT would have absolutely no effect. In fact, the risk would be DEflation, as LVT eliminated land value and reduced production costs across the board.
eg... Say there is a primitive economy which is dominated by agriculture. The vast majority of land is held by a few landowners and they are able to charge excess rent for their control.
This has sometimes happened when people are not free to pursue alternatives, like the medieval serfs who were legally required to stay on the land. But it is not normal.
If say the landlord is charged x more per acre in taxes...what is to prevent the landowner from raising his rent (which could be indirect as a form of product markup) by that same amount?
The fixity of land's supply. As the landowner can't affect either supply or demand, he can't affect price. If he tries to charge more than the market rent, he just ends up getting nothing. This is a fact of economics that has been known for 200 years. LVT cannot, repeat, CANNOT be passed on to tenants, producers, employees, consumers, or anyone else. It is borne entirely by the landowner. The actual effect of LVT is therefore to eliminate speculative withholding of land, LOWERING rents.
So landbaron x gets charged 50k a year in taxes...what is to prevent them from merely raising their prices to recapture this 50k?
People won't pay it. If they would, what's to stop him from charging it now?
If this was the case...then the landbaron could care less about property taxes because he can just pass it on to the consumer/renter. In fact those hurt most might those who acquire land for personal property (like homes) and can not pass on the cost. Granted you do advocate an exemption, but it still seems to me that big business would game a land tax and the public could end up paying the bill.
One can never know for sure what a government will do in the event. That is a political problem peculiar to each jurisdiction, and irrelevant to what kind of policy government should pursue as a matter of principle. Implementation is an issue no matter what policy you advocate, even if it is no policy at all.
 
But what would stop a land-tax from being inflationary? eg... Say there is a primitive economy which is dominated by agriculture. The vast majority of land is held by a few landowners and they are able to charge excess rent for their control. If say the landlord is charged x more per acre in taxes...what is to prevent the landowner from raising his rent (which could be indirect as a form of product markup) by that same amount? So land baron x gets charged 50k a year in taxes...what is to prevent them from merely raising their prices to recapture this 50k?

Firstly, in your example, there is a monopoly in land. In any society, of any ism or economic system, this is not good as gross inequalities occur.
Secondly, the market does come into effect. The land-baron can only charge what the market will bare.

Ideally monopolies commissions should intervene in land ownership. It appears they ignore land, particularly in Britain where few own most of the land. But the land-baron cannot hoard land for speculation purposes, as the tax is due whether used or not, so monopolies will be reduced. He will sell off land he cannot use productively. A smallholder paying no rent to a land-baron may make the land economically productive.
 
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You have strange idea of socialism.
Socialism is government control over the production of goods and services, and that is accomplished through taxation. You keep arguing for it and I keep arguing against it.

Land values never came for the sky. Economic activity by the community created them. You have been told this. If you can't understand this just accept it.
Land values are subjectively valued by individuals. Collective economic activity by individuals is the economic activity of the community.

Your confusion is abundantly clear.
I'm confused? You claim freedom comes from taxation. How? Exactly how does taxing a landowner make him/her more free?

But the values soaked into the land created by the community gets reclaimed. Otherwise you are freeloading.
How does community increase the value of land? An individual can increase the value of land by clearing it, preparing it to produce good crops, and/or fencing it for livestock, and/or building a dwelling in which to protect against the elements, etc. Individuals can increase the value of land. Exactly how does community increase the value of land?
 
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Socialism is government control over the production of goods and services, and that is accomplished through taxation. You keep arguing for it and I keep arguing against it.

So non-socialist countries that have taxation are now socialist? Is it worth communicating with the likes of you? Duhhhhhhhhhhhhhhhh

Land values are subjectively valued by individuals.

But are set by community demand.

Collective economic activity by individuals is the economic activity of the community.
Encouraging. You are getting there.
I'm confused? You claim freedom comes from taxation. How? Exactly how does taxing a landowner make him/her more free?
LVT is NOT a tax. It reclaims community created wealth. You have repeatedly been told this, but of course it does not sink in. Duhhhhhhhhhhhhhh
How does community increase the value of land?
You have repeatedly been told how. Duhhhhhhhhhhhhhhhhhh
 
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