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by benja810
1201 days ago
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I believe GP was describing the [Land Value Tax](https://en.wikipedia.org/wiki/Land_value_tax). The idea being that a government invests in the infrastructure that improves the value of the land and because it's _public_ money funding those improvements, the property taxes should reflect the value provided. No one would be forcing people to live a certain way, just forcing them to either pay for the privilege of living in an area that was granted public funding for improved infrastructure, or live somewhere else that received less public investment. As a thought experiment, I find it easiest to understand the arguments for the Land Value Tax if you imagine a local government building a new subway line. Obviously, the existing homes around the new stops would have their property values increased. After all, many commute times were just cut in half! The local government is interested in more people living near those lines, more people == more tax revenue after all. If the local government had a Land Value Tax implemented, the infrastructure improvements they made to the area would automatically be included in the calculation for the taxes owed by the existing homeowners near the new subway stops. $1M/yr may sound insane, and it would be for a single-family home, but because of the new subway line, local developers are lining up to purchase the homes around that line in order to build new higher-density homes. The existing homeowners can either choose to pay the high tax and enjoy their short commute paid for by other taxpayers, or sell at a nice profit to developers. New higher-density homes get built, more taxpayers move in, the city can now build more infrastructure to improve the city! |
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