No, it doesn't. It only taxes
deprivation of resources imposed on others by initiation of force.
I should have written "Both the resources used to build and also to maintain and operate them -- concrete and metal and whatever -- are taxed, back when they're in the ground, because the value of those resources is a component of the land's value." But I didn't realize there'd be any confusion.
The confusion is yours. As already explained, only the
rent of a resource is taxed, so LVT does not increase its cost. Any rent not recovered by taxation will just be pocketed by the resource owner, and any resource that yields no rent can be used without paying any tax. So in either event, LVT CANNOT increase the producer's cost.
But is it not also undesirable for rich people of all and sundry types to "profit extraordinarily", according to the masses? Why are the masses wrong, except for about... wait, do I say natural resources or land to you? In what sense are you using "land"?
Answer MY arguments, not the arguments you claim I am making on behalf of the masses.
Because in economic terminology, of course, the "resources" we were discussing earlier -- ore, concrete, etc. -- are land.
Concrete is a product of labor and therefore not land. You know this.
Except for that they're not, because they can't afford the LVT.
Yes, of course they can, because LVT can't exceed the market rent, and by definition the market rent is a price someone is willing to pay.
Yes, and housing vagrants is probably not a very efficient or high-value use, is it?
It is if no one else wants to use the land enough to be willing to pay anything to use it.
You're focusing on irrelevant details.
You're talking silly nonsense.
I wrote that post in a parallel structure for a reason, to make it clear the parallels between factories and land.
And you failed.
There's no philosophic difference between the matter and space we call "factory" and the matter and space we call (layman's) "land" that makes one ownable and one not.
Yes, of course there is: the fact that owning land violates others' rights, while owning a factory does not.
They both consist of matter, which has been rearranged to an extent by man.
By definition, land has not been rearranged by man.
They both occupy three-dimensional space. The matter in both can, in theory, be moved. They both should be ownable.
The matter in the land
HASN'T been moved, and is therefore
not rightly ownable.
How does one measure such a thing?
By the degree to which it follows the two most fundamental and widely accepted principles of sound tax design: "ability to pay" and "beneficiary pay."
Is there a badness meter we can use to empirically prove or disprove your theory?
You could also refer to Smith's "Canons of Taxation," if you were interested in understanding anything about taxation.
Some would say a low general tariff is the least bad. Others would say a poll tax.
And they would be objectively wrong.
Others, like myself, would say that the most important thing to realize about taxes, all taxes, is that they are nothing but an institutionalized crime -- extortion -- and must all be abolished.
It is
landowning that is an institutionalized crime -- extortion -- and must be abolished, as already proved:
The Bandit
Suppose there is a bandit who lurks in the mountain pass between two countries. He robs the merchant caravans as they pass through, but is careful to take only as much as the merchants can afford to lose, so that they will keep using the pass and he will keep getting the loot.
A thief, right?
Now, suppose he has a license to charge tolls of those who use the pass, a license issued by the government of one of the countries -- or even both of them. The tolls are by coincidence equal to what he formerly took by force. How has the nature of his enterprise changed, simply through being made legal? He is still just a thief. He is still just demanding payment and not contributing anything in return. How can the mere existence of that piece of paper entitling him to rob the caravans alter the fact that what he is doing is in fact robbing them?
But now suppose instead of a license to steal, he has a land title to the pass. He now charges the caravans the exact same amount in "rent" for using the pass, and has become quite a respectable gentleman. But how has the nature of his business really changed? It's all legal now, but he is still just taking money from those who use what nature provided for free, and contributing nothing whatever in return, just as he did when he was a lowly bandit. How is he any different now that he is a landowner?
And come to that, how is any other landowner charging rent for what nature provided for free any different?
Murray Rothbard, while never endorsing an LVT, thought LVT was a horrible idea and was incompatible with a free society.
I have demolished Rothbard's anti-LVT "arguments" utterly.
True. It's nevertheless useful to remember or realize that the same factors that apply to other kinds of taxation apply to LVT.
No, they do not. Unlike other taxes, a tax on the rent of a factor in fixed supply cannot, repeat, CANNOT have any excess burden -- i.e., it cannot make society poorer, only those who pay it (and others will be equivalently richer). That is a fact of economics that has been known for 200 years. It is merely a fact of economics that is not known to
you, because you do not know any economics.
The two I mentioned were: "you can only squeeze your host for so much or else he dies",
The full rent of land can be recovered by taxation, and economic activity -- production and exchange -- will not be impaired one iota. It is only if government attempts to take MORE than the full rent, via a more than infinite ad valorem LVT rate, that harmful effects are possible; and government has no motive to impose a more than infinite rate, as that would only reduce revenue.
and "all taxation is a drain on the economy". By its nature, taxation transfers wealth from the economic class, society, to the political class, the state. That is what LVT does.
It is the landowner who is the drain on the economy. He is a pure parasite. Government, by contrast, is a producer that provides services and infrastructure for which people are willing to pay -- willing to pay even landowners, who do not provide those services and infrastructure.
Are you OK with that? Do you think it's OK for that group of parasites we call the state to rob society?
It is
landowners who are parasites and rob society. Land value is identically equal to the minimum value of what the landowner expects to take from society and not repay in taxes.
Then why not just use user fees?
In most cases they are not efficient, as they discourage low-marginal-cost, high-marginal-benefit use.
So then the landowners are paying for it all -- all these beneficial things -- and they are the ones deciding what to spend, managing the process, and keeping oversight on things. I see the advantage to this, I see what you're saying, and it's the right idea. But why not take it all the way? Why set up a crazy monopolistic system with use of aggressive force as a primary mode of operation?
There is no way to allocate exclusive use of land but by force. It is impossible.
Why not just have landowners voluntarily pay in order to obtain these various benefits for the general welfare?
Once upon a time, all the taxes were paid by landowners, and only landowners could vote. Problem is, the first thing those landowners voted for was to make someone else pay the taxes.
Voluntary is good. Aggression is bad.
How is initiating force to deprive someone of their liberty "voluntary"? How is it not aggression?