Does anyone have a good essay about federalism—particularly the history of the US and how we have divided power between the federal governments and the states?
“Land value taxes are generally favored by economists as they do not cause economic inefficiency, and reduce inequality.[2] A land value tax is a progressive tax, in that the tax burden falls on land owners, because land ownership is correlated with wealth and income.[3][4] The land value tax has been referred to as “the perfect tax” and the economic efficiency of a land value tax has been accepted since the eighteenth century.[1][5][6] Economists since Adam Smith and David Ricardo have advocated this tax because it does not hurt economic activity, and encourages development without subsidies.”
Despite this rather glowing summary, and support by economists from Milton Friedman to Paul Krugman, land taxes are rare. The Economist explains:
“The bigger barrier is political. LVTs would impose concentrated costs on landowners [a politically powerful constituency], who face a new tax bill and reduced sale price. The benefit, by contrast, is spread equally over today’s population and future generations. The problem is unlikely to be overcome. Economists will continue to advocate LVTs, and politicians will continue to ignore them.”
Some jurisdictions have managed to implement land value taxes. Denmark and Estonia have a form of the tax, and a handful of municipalities in Pennsylvania (Allentown, Harrisburg, Altoona from 2009-2018ish and Pittsburgh from 1911-2000) have experimented with it or its cousin split-rate taxation. Split-rate taxation taxes both land and structures like a traditional property tax, though it taxes land at a higher rate (often 5:1) than structures.
I’m still researching various income streams for governments and I’m wondering: will income tax be the best way to tax in the future? (I’m thinking about remote work and how we might be taxed in one location but living in another one). Or are there governments who are pulling tax revenue from other unique places? Are there any good books or essays about unique tax structures that have worked well/make sense?
Does anyone have a good essay about federalism—particularly the history of the US and how we have divided power between the federal governments and the states?
Despite this rather glowing summary, and support by economists from Milton Friedman to Paul Krugman, land taxes are rare. The Economist explains:
Some jurisdictions have managed to implement land value taxes. Denmark and Estonia have a form of the tax, and a handful of municipalities in Pennsylvania (Allentown, Harrisburg, Altoona from 2009-2018ish and Pittsburgh from 1911-2000) have experimented with it or its cousin split-rate taxation. Split-rate taxation taxes both land and structures like a traditional property tax, though it taxes land at a higher rate (often 5:1) than structures.
Thank you so much, this is very helpful!
I’m still researching various income streams for governments and I’m wondering: will income tax be the best way to tax in the future? (I’m thinking about remote work and how we might be taxed in one location but living in another one). Or are there governments who are pulling tax revenue from other unique places? Are there any good books or essays about unique tax structures that have worked well/make sense?
You will hear a lot about Georgism which advocates a tax on the (unimproved) value of land. This might be a starting point: https://www.astralcodexten.com/p/your-book-review-progress-and-poverty
Thank you!