Georgism? In the big 2026? Now that's a blast from the past!
Now, land value taxes obviously have their place in the gamut of different taxes to levy, so I don't wish to badmouth them too much. But as a consumption tax, VAT also does have its place. Sure, they are absolutely regressive, but this also helps them to act more like Pigovian taxes, since they can be used to make certain categories of goods and services more expensive. And so if one can afford to pay the value of the negative externalities, why not. And hopefully it can then steer people towards better choices.
> And hopefully it can then steer people towards better choices.
As a counterexample, tobacco taxation is less effective for reducing smoking than alternative policies [1]. So, yes, we can hope that higher taxes help people make better choices. Or we can implement better policies that are known to be more effective.
Some recent studies have shown that a properly implemented LVT avoids harming most homeowners, in fact you may come out ahead if other taxes are eliminated. (LVT alone is adequate to fund government spending and entitlements.) The homeowners who will typically feel a pinch are those who have inherited very large estates which don’t generate income. They may need to sell or develop part of their estate.
Land speculators, however, will be in serious trouble.
Now, land value taxes obviously have their place in the gamut of different taxes to levy, so I don't wish to badmouth them too much. But as a consumption tax, VAT also does have its place. Sure, they are absolutely regressive, but this also helps them to act more like Pigovian taxes, since they can be used to make certain categories of goods and services more expensive. And so if one can afford to pay the value of the negative externalities, why not. And hopefully it can then steer people towards better choices.