tag:blogger.com,1999:blog-6897479481146623890.post4271149787860130887..comments2023-12-27T09:39:29.958-07:00Comments on Brian Dell: land value taxation and the ECCA closure debate: oligarchs in the shadows?Brian Dellhttp://www.blogger.com/profile/15277892651810185583noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6897479481146623890.post-11435289114339398732010-11-03T09:54:25.321-06:002010-11-03T09:54:25.321-06:00Hey guys how important the issue that have posted ...Hey guys how important the issue that have posted on the blog, which is terrible fighting taxes every day, thanks for the information. I feel very good article.car rental costa ricahttp://www.renta4x4incostarica.com/testimonials.htmlnoreply@blogger.comtag:blogger.com,1999:blog-6897479481146623890.post-91895468202544840712010-09-28T09:00:57.803-06:002010-09-28T09:00:57.803-06:00Good point about the relationship between speculat...Good point about the relationship between speculators and interest rates, Brian. I hadn't considered that. It's given me food for thought. Thanks.Derekhttps://www.blogger.com/profile/06296053477905542366noreply@blogger.comtag:blogger.com,1999:blog-6897479481146623890.post-34613876457152211622010-09-28T01:22:10.216-06:002010-09-28T01:22:10.216-06:00To David:
Yeah, adding, say, another storey to a ...To David:<br /><br />Yeah, adding, say, another storey to a building creates no additional tax obligation, unlike the status quo where improvements increase total property value and therefore tax liability.<br /><br />The main argument for land value taxation is efficiency, however, as opposed to encouraging density. Density is a side effect, if you will.<br /><br />To Derek:<br /><br />As you may be aware, in economics "rent" refers to a payment that does not affect the supply of the input, as opposed to meaning what ordinary people mean when they use the word "rent."<br /><br />Of course the land value tax should be collected periodically. But I don't think that we can avoid considering interest rates if one is going to use land value taxation to discourage speculation and a boom and bust cycle of property bubbles. A speculator, of course, buys not for what can be done with land today but in the future. Future expected income streams are discounted to the present using interest rates.Brian Dellhttps://www.blogger.com/profile/01987594019787137564noreply@blogger.comtag:blogger.com,1999:blog-6897479481146623890.post-46237379867227112812010-09-27T20:39:48.586-06:002010-09-27T20:39:48.586-06:00The best form of LVT is the one where you base the...The best form of LVT is the one where you base the valuation on the potential market rent for a plot. It's better because the tax level is more predictable. That's because the rent level doesn't fluctuate so much as market price does. Market rent is only affected by how much money you can make by using the plot whereas market price is affected by that and by mortgage interest rates.<br /><br />For the majority of householders it would be a slight saving on the property tax. We'd need to do some calculations to find out exactly how much and where the breakeven point was. However a lot of people who have valuable downtown land and aren't currently doing much with it would suddenly find it worth their while to develop or sell. Whether they did so would be up to them of course. But going by <a href="http://www.partialobserver.com/article.cfm?id=2098" rel="nofollow">the experience of those North American cities</a> which have implemented some form or other of LVT at opne time or another, from post-earthquake San Francisco in 1906 to New York City in the 1920s to various Pennsylvanian cities in the 1980s, development would happen. And development means more people paying city taxes, so everyone has a smaller share of the tax burden to carry. That's a good thing even if you don't count the extra employment that new development brings.Derekhttps://www.blogger.com/profile/06296053477905542366noreply@blogger.comtag:blogger.com,1999:blog-6897479481146623890.post-91140170300552854302010-09-27T20:10:52.722-06:002010-09-27T20:10:52.722-06:00OK, I can see how this would encourage high densit...OK, I can see how this would encourage high density. <br /><br />Big plots of land with a single house pay more.<br /><br />Smaller plots of a land with a single house pay less.<br /><br />Condo high-rise dwellers pay much less. <br /><br />So you pay for the land, not how you've developed it. There's no penalty for building a fantastic house, and you're encouraged to build a high-density dwelling. <br /><br />Correct?dstapleshttps://www.blogger.com/profile/04778771114265145395noreply@blogger.com