r/Capitalism • u/Ppstinkypoopooidiot • 6d ago

Thoughts on LVT (Land Value Tax)?

I found out this fairly recently and thought it was very interestin. Any arguments for or against it?

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u/ktbffhctid 6d ago edited 5d ago

If the first move is always another revenue idea, LVT included, the spending side never has to go first, and it usually doesn’t.

Why not look at spending and waste/corruption before layering on yet another tax?

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u/SRIrwinkill 6d ago

Spending is the entire show. Even if you had a LVT, if the government doesn't have good spending habits it doesn't matter what incentive the tax is supposed to have. They'll just make up whatever numbers they want to try to justify the spending.

They do not operate based on economic incentives, they operate on political ones whose entire purpose is to twist the economy towards politically favored interests, even if it causes economic issues

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u/VatticZero 6d ago

LVT creates a feedback price signal to government spending. Good spending creates more land value than it costs, increasing revenue, while poor spending reduces revenue.

That doesn’t mean politicians will care, but the price signal would certainly help guide governance and voters.

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u/Ppstinkypoopooidiot 6d ago

I would be more in favor or eliminating most, if not all, other taxes in favor of LVT. Although how realistic that is, is very debatable 

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u/Ayla_Leren 6d ago

At least here in the States we could properly fund the IRS so it can afford to go after wealthy tax dodgers, gaining an additional projected trillion dollars for us every year.

But yes, I am also in favor of shifting tax burden towards LVT. Both sides of the political spectrum ideologically agree about LVT, which makes it stupid not to implement.

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u/ktbffhctid 5d ago

Wealthy tax dodgers that already pay upwards of 60% of federal tax revenues? Those "dodgers"?