Re:Does Georgism work? Is land a big deal?
by abathur on Thursday December 09, 2021 @12:12AM
(#29494058)
This is roughly the point, though.
It doesn't _absolutely_ disincentivize these things unless they are operating at a loss. It certainly disincentivizes "economic activity" like opening an at-grade parking lot in a bustling city-center in order to minimize the property tax you pay while the land appreciates in value more than it disincentivizes opening a parking garage there (assuming there's actually enough parking demand to pay to build and maintain).
(I don't entirely disagree with you--it seems like this would shunt some investment away from investments that need expensive land. It's less clear to me whether that is good, neutral, or bad.)
It doesn't _absolutely_ disincentivize these things unless they are operating at a loss. It certainly disincentivizes "economic activity" like opening an at-grade parking lot in a bustling city-center in order to minimize the property tax you pay while the land appreciates in value more than it disincentivizes opening a parking garage there (assuming there's actually enough parking demand to pay to build and maintain).
(I don't entirely disagree with you--it seems like this would shunt some investment away from investments that need expensive land. It's less clear to me whether that is good, neutral, or bad.)