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by casual_slacker
2700 days ago
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Taxing real estate at large causes a supply-side pressure, driving up market prices. If you only "tax" very specific land around a train station, you limit the effect on the greater market. In theory a government could pass such location-specific tax law, but I've only see that done via property taxes. |
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Not if you tax the value of ground rent only. If anything, the effect goes the other way, as owners are incented to put their underused properties on the market. (And yes, taxing ground rent only in some relative small areas e.g. around a station may introduce distortionary incentives. But in general, shifting taxation towards land improves the incentive for good government, especially provision of local amenities.)