Re:Detroit wants to be the first big American city to tax la...
by somethoughts on Tuesday October 17, 2023 @03:27AM
(#37911671)
Interesting - perhaps I don't understand quite clearly though?
Assume a long time single family home elderly owner on a fixed income (i.e. social security) that had modeled for only linear increases in accessed land value (and associated taxes) but experienced exponential accessed land value appreciation (and tax increases).
Would the proposed solution be for the original long time elderly owner to sell 50% rights to the property in exchange for another future owner to tear down the single home and replace it with a duplex for the original owner and new co-owner to live in together?
Or is the assumption that only well capitalized apartment owners are the only ones who own the land and have the capability to teardown and re-build as more units or renovate and raise rents?
Georgism doesn't require that any more than the current system. In fact, for people who haven't already bought a home, the cost under a Georgist system are almost exactly the same as before:
The yearly outlay for owning a place is the same, because market forces will adjust land prices to make it so. The sum of cost of capital plus all taxes is roughly only dependent on demand / what recurring benefit you can derive from the land. Under LVT your mortgage will be smaller, but you have more taxes on the land.