Wednesday, February 21, 2024

A Land Value Tax is the Future

A Land Value Tax (LVT) is a tax on the unimproved value of land. This video explores its benefits and why, despite those benefits and support from a wide array of economists, it hasn’t been broadly implemented. Economists prefer LVT because land is just about the only commodity that’s essentially fixed. This means the tax cannot be passed onto tenants because landlords would’ve already charged the maximum profit they think they can get on their property. Moreover LVT reduces land speculation as it reduces profit for those who buy land without wanting to live upon it or to develop it.  LVT exists in Denmark, Hong Kong, Singapore, South Korea, Taiwan, and Pennsylvania, but why hasn’t it been adopted in more places?