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by jey 3811 days ago
Does it even really make sense to "own" land?

One alternative is "Georgism", which is the idea that land is a resource collectively owned by society, but people can temporarily monopolize a piece of land by renting it from society. The rents thus collected go into the society's general fund to pay for public goods like fire stations, healthcare, universal basic income, etc.

https://en.wikipedia.org/wiki/Georgism

3 comments

The problem with that scheme is that a reasonable implementation of it will still greatly resemble land ownership.

Say I rent a parcel of land from society and pay money each month to do so. I build a building on top and use it.

Under what conditions can I keep using this land, besides paying the rent? Do I lease the land from society for a fixed term, after which the land may be freely rented to someone else? In that case what happens to the building on it that I've invested my own money into?

The problem here is that land by itself is not useful but improvements in combination with the land is, but said improvements are almost always not portable. I can pack up my furniture and move out of my apartment, I can't pack up a building.

So naturally we'll want some way to ensure people who have improved the land can continue using the land - which really starts resembling ownership + property tax at this point.

Does it make any more sense to declare that land must be "owned" by society, and that rents should be extracted from it, than that it can be owned and exploited by individuals? The difference between the two seems like semantics to me, in either case the land is still owned.
I'm not sure I buy into the whole thing, but do see some value in land taxes over property taxes in that it is an incentive for density: if you have 10000 square meters you are taxed the same whether you build a single story ranch house with a big yard, or an apartment building.

That said, how's it work out in practice? You can't tax land in downtown Portland at the same rate you tax it in Harney County, where it's mostly empty desert. But if you tax land outside cities cheaper, maybe that would encourage sprawl towards the cheaper areas?