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True. So should one of those two factors be considered more important than the other?

Ok, so if tax is specifically paying for infrastructure and not being used as a tool to redistribute wealth, then the best tax would exact from every person according to their benefit (or use) of that infrastructure. Obviously, the infrastructure is not all tangible. There are roads...

Think about this though. It became evident very quickly how much our economy hinges on construction. Take a second and conjure up a theory of what will happen if the cost of constructing any property is suddenly 30% higher? Let's get into the nitty gritty a bit. There is a big debate in...

I have one question that people can answer here. What are the characteristics of the ideal tax? Or what is the purpose of a tax in the first place?

Like I said, I like the transaction tax (fair tax) idea. There are just certain BIG problems that would have to be overcome. My biggest problem with it is the idea I suggested earlier. Our system currently survives off over-consumption. A 30% consumption tax would be a big hit in the...

Well, I tried to promote a debate, but maybe the topic was a bit too unfamiliar and foreign to our American way of thinking about land and tax. I suppose a better idea might have been to debate "fair tax" instead. I tried. :p I will say that a couple people argued their case, and...

Actually, the economic theory suggests that as a portion of income, food prices would not skyrocket, but would actually fall slightly. Economists suggest that the efficient land use incentive is so strong with a tax like this that people could not afford to hold land in an unproductive state...

I might point out that while I support the "fairtax" and have been a proponent of it for years, it seems fairly obvious to most economists that in contrast to what you claim about the rich paying the most, the most common consensus is that it places the heaviest burden on the middle and upper...

I thought I made it obvious that the "virtual" tax was just an idea that I threw out there to address the modern issue of companies that function mainly in the digital world. Many people expect them to contribute to the tax base. But the concept of LVT isn't silly. Quite the contrary...

A large number of states have property tax right now that is based on the entire property value yet most tax assessments actually slightly under value the property. Re: the rate. Sure it is high because the question was revenue neutral. The govt is getting that money from you one way or...

Like I said, I don't dislike the fairtax. It just has huge drawback and in reality is incredibly difficult to enforce. It allows for a massive black market to form with almost no way for the government to regulate it. It also requires effort to ensure that the poor are exempt. Under LVT...

You might be correct, but how is that different than any other tax that we can come up with. You don't think that politicians will try to unfairly boost revenues under a "fairtax"? Describe the problem. What is preventing them from squatting on worthless land right now? Remember that...

Your concern about property values is actually used to argue in favor of LVT. Locations with high property values are populated by more wealthy people. If someone wants to live on what is considered a "prime" residential lot, they must pay a higher tax. Thus someone choosing to live in...

How is it any less possible than any other proposal? Allow me to give you a list of countries with an LVT. Taiwan, China, Singapore, Estonia. South Korea, Ireland, Scottland, and the UK are pushing for it as a preferred method of taxation. Specifically in the UK, the Labour Party...

Free Thinker, Allow me to present the argument a different way. Suppose you are wanting to own your own business. You have two options; 1) Build your business from scratch. 2) Purchase an existing business. First you must see if there is an existing business that fits the...

Well are you going to present an argument or just a comment that is completely without value? I thought the point of the thread was to have an intellectual debate. :confused: Please explain what is incorrect about the valuation of land in that post.

A rough calculation suggests something around 40% in the end if there were no other taxes. Admittedly this sounds high, but remember that we are only talking about the unimproved value of the land. If I live on a 1/4 acre lot that is worth $50K, even though my entire property is worth $350K...

No we aren't. You need to think a bit more deeply about it. The LVT is based on a % of the land's value. Two lots of equal size but differing values carry a different tax burden. So what determines the value of a property? It is in your question. The value is derived from its potential...

To provide a bit more background on the reason why so many of the biggest names in economics support the LVT above all other forms of taxation is as follows. The idea is that the land in America belongs inherently to nation. No person created the land, and any increase in the value of that...

Which details specifically? Let's hear the debate.