Re:Detroit wants to be the first big American city to tax la...
by eru on Monday October 16, 2023 @10:36PM
(#37909822)
About (1): that's no different from existing property taxes, isn't it? How does an LVT increase the likelihood here?
About (2): LVT has no incentives or disincentives for how you use your land. It's entirely up to you, your tax is the same no matter what you do with the land. That's why an LVT is economically efficient: it doesn't mess with market allocation or land use.
Why would green space be reduced? If green space is the best use of a given plot of land right now, an LVT doesn't change any of the incentives nor opportunity costs at all. (Also keep in mind that many green spaces are zoned exclusively as such. LVT doesn't influence zoning.)
About (2): LVT has no incentives or disincentives for how you use your land. It's entirely up to you, your tax is the same no matter what you do with the land. That's why an LVT is economically efficient: it doesn't mess with market allocation or land use.
Why would green space be reduced? If green space is the best use of a given plot of land right now, an LVT doesn't change any of the incentives nor opportunity costs at all. (Also keep in mind that many green spaces are zoned exclusively as such. LVT doesn't influence zoning.)