----- Original Message ----- From: "JT Ramsay" <ramsay_jt at hotmail.com> To: <lbo-talk at lbo-talk.org> Sent: Wednesday, January 21, 2004 1:22 PM Subject: Re: [lbo-talk] Georgism on the left
> > > The nice thing about a land tax is the tax base
> > > can't run away. There is no incentive effect.
> > > You pay the same whether you build on it or not.
> > > With a zero tax on 'improvements,' your incentive
> > > is to find the most profitable use for the land.
> > > (Chances are you could get away with a non-zero
> > > tax and still reap the benefits of the land tax.)
> >
> > > The problem with Georgism is the land tax base
> > > is insufficient to finance a splendid progressive
> > > welfare state. I would recommend it to cities.
> > > It would promote density in urban cores & less
> > > sprawl.
>
> this was proposed in philadelphia recently by unpopular city councilman
> frank dicicco along with diane lucidi who represents the greater
> philadelphia association of realtors. it failed. i interviewed her once
and
Why would realtors be in favor of land-value taxation (LVT)? I figure they stand to lose in the long run, bigtime.
> it was very interesting; she suggested bulldozing all of north
philadelphia,
> regardless of residents. i found it difficult to take her very seriously
> after that. she also went to g-town law, which makes me wary of g-town
> lawyers.
>
> but more to the point:
> if cities were to use this tax would it counteract the ten year tax
> abatements that have already been renewed for all downtown hotels? or that
There are much bigger transition problems than that. Biggest political problem is that the value of middle class "homesteads" would go down. A Georgist who writes on sci.econ points out that this isn't really a problem, since overall the government would tax income less (if you make revenue neutral assumptions). But he adds that it might *seem* bad, because the future stream of economic rent coming from land possession is (at least partly) capitalized in the market value of the land, whereas the future stream of income coming from labor isn't.
> the city of philadelphia is presently running the ritz carlton on s. broad
> st.? also: would this affect the current vacancies in hi-rise office
space?
> philadelphia may soon have empty skyscrapers to commiserate with the
> abandoned factories.
Don't know the direct answer. Indirectly (theoretically), Georgist schemes would promote efficiency in the use of land, which might lead to a dampening of boom/bust real estate cycles. But I'm in over my head.
> oh, and philly's not necessarily more fun when you sleep over. i sleep
over
> in philadelphia every night! (ignore this if you haven't seen the ad
> campaign. it's really only popular in s. jersey.)
> jt. r
>
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