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A Single Tax On Land


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2008 Feb 12, 12:47am   13,188 views  130 comments

by Patrick   ➕follow (59)   💰tip   ignore  

Henry George

A while ago a reader told me about Henry George and his idea of a single tax on land. I've now read an abridged version of Henry George's book "Progress and Poverty" and it makes a lot of sense to me.

The basic idea: there should be no income tax, no sales tax, no tax of any kind except a tax on the value of land (not on the buildings or improvements). You want to encourage earning incomes, and encourage commerce. You want to discourage lazy rent-seeking.

No one makes land, so why should some people profit forever from getting rent on something they did not produce? It's also very easy to enforce. There is no way to hide land, and land tax records are public.

Henry George makes a good argument that increasing inequality is caused mainly by the consolidation of land ownership, and that taxing land is the way to keep societies from getting too stratified and corrupt, and to encourage innovation and hard work. His description of watching San Francisco develop seems to support the idea.

Could it work? Would it just cause incredible urban sprawl? Would rich people just own gold rather than land? But then we'd all benefit from cheap land, and by extension, cheap housing...

#housing

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78   HelloKitty   2008 Feb 12, 7:41am  

My accountant been doing taxes 40 years. He says there is constant 'flat tax' talk but every year the tax rules get more and more complex and byzantine. Witness the oct 2007 'dont tase me bro' walkaway tax free rule....(if you bought your house in certain years or walk away in certian years?)

The only way to wipe out all taxes and start over is to start a brand new country. And then after 30 years you will need better schools and have 2 wars and have new taxes every year just like the old country....

tax reform -its hopeless. Ron Paul has a better chance getting elected than any flat tax system.

79   Peter P   2008 Feb 12, 7:43am  

Personal wealth should decay exponentially with time through wealth and inheritance taxes, so that unproductive wealth (aka. sitting on ones fat ass) is penalized.

Why?

Why not penalize welfare recipients for sitting on their fat asses and breeding future welfare recipients like rabbits.

80   Peter P   2008 Feb 12, 7:47am  

If we cannot get a flat tax we should at least hope for a cut in marginal tax rates.

Again, justme, we should agree to disagree. :)

81   justme   2008 Feb 12, 7:53am  

Peter P,

I'm always agreeable to disagree with you about taxes, or any other controversial matter, for that sake :-). But I feel compelled to provide the alternative view when you are striking left and right (well, left mostly) with your pithy one-liners.

82   justme   2008 Feb 12, 7:54am  

HelloKitty,

I agree with you.

83   DennisN   2008 Feb 12, 8:23am  

Idaho has a novel take on sales tax of food items....
All items in the store are taxed. The merchant doesn't segregate items into taxable vs. non-taxable. But on your state income tax return you get a standard credit per person to repay you for the food sales tax. Currently the "grocery credit" is $20 per person ($45 for old folks) in one's household but the legislature is talking about bumping it up. In discussions with my state senator the other day, he said this is a smart move because tourists and ILLEGAL ALIENS will pay the tax but not get the credit. :)

84   OO   2008 Feb 12, 8:46am  

DennisN

what is the sales tax rate on food (roughly for all counties) for ID?

85   DennisN   2008 Feb 12, 9:08am  

General sales tax is 6%, so that credit only works out to about $330 a year for food. That's why the legislature is working on a new bill to bump it up....something more like $60-70 per person.

86   Ed S   2008 Feb 12, 9:22am  

NVR,

Are you talking about the Dulles Greenway? Last time I was on it, I think it was about $6 for 10 miles of road. Is that the one?

Peter P.

Can you name a single example of when, "the operation of toll roads becomes profitable, more toll roads will be built, creating competitions" has actually occurred?

For example the PA turnpike (recently sold, as I recall), was opened in 1940 and was profitable for decades. No other road ever opened.

Not trying to be troublesome -- it's a serious question.

87   anonymous   2008 Feb 12, 9:25am  

OK let's say you can eat for $3 a day. That's $1700 a year. At Arizona's 10% tax, that's $170 a year. Per person. I'd like to see a rebate for that!

88   anonymous   2008 Feb 12, 9:25am  

Taxing food is just ..... weird.

89   Peter P   2008 Feb 12, 9:43am  

For example the PA turnpike (recently sold, as I recall), was opened in 1940 and was profitable for decades. No other road ever opened.

Or, existing public roads can be sold to private companies. This creates two things:

1. much needed revenue to pay down the national debt
2. competition between tool road companies

Frequently, toll roads are not constructed because of NIMBYism, not economics.

90   Peter P   2008 Feb 12, 9:45am  

Taxing food is just ….. weird.

I agree. :)

91   northernvirginiarenter   2008 Feb 12, 10:01am  

@Ed

Yup this is the nasty beast, the Dulles Greenway. 10 miles sounds about right, it's $3.50 each way 2 axel during prime commute hours, plus another $0.75 each way if you pass through the toll extension at Tysons in Mclean to Arlington/DC. So roughly $8.50 per day x 20 commute days per month = $170.00 per month. It is privately owned by the "Toll Road Investors Partnership II (TRIP II)". This is in turned owned by an Australian private company, Macquarie Infrastructure Group. I believe our friends at KBR (Kellogg Brown and Root) also own a big stake.

And the lovely exburb of Ashburn (aka as*burn) is obviously the locale of which I speak. I live in Middleburg area (horse country, my ex loved the horses. I don't recommend the horse women,btw and OT).

The Va State Corp Commission, which is the regulating body over the road, just approved annual increases to $4.80 each way on the greenway portion by 2012.

A little known fact is it was built to some degree to divert the sheeple and sprawl away from the hamlet of Middleburg by the rich old money around. Better to point that thing towards Leesburg than be subject to development which would have resulted otherwise. This area is home to the Mars families, Mellons, Duponts, you name it. Even Sandy Lerner, co founder of Cisco, has big place here. Shelia Johnson is another Billionaire who is making waves around town with a new resort.

92   SP   2008 Feb 12, 10:17am  

justme said:
Personal wealth should decay exponentially with time through wealth and inheritance taxes, so that unproductive wealth (aka. sitting on ones fat ass) is penalized. The time constant should be such that amassed wealth is mostly gone within 3 generations.

Whenever some jackass starts talking about what should happen to other people's property, I generally tend to stop paying attention. Nothing personal.

93   justme   2008 Feb 12, 10:21am  

Ed S and NVR,

Goes to show exactly what happens when roads get privatized.

I have an idea: Let's privatize our FREEDOM(tm). Then you can pay for your freedom anytime you need some. Obviously, freedom is much too valuable to be squandered by the gubbermint. They are always so wasteful and stupid. Privatize the constitution, too, while we are at it. In fact, why don't we privatize Congress while we are at it. Clearly, everything will be much better if Congress is run for profit(*). We'll get the laws that we pay for, what could be better than that,

(*) Yes, I'm turning up the sarcasm to the max here. But you get the idea.

94   Peter P   2008 Feb 12, 10:24am  

Goes to show exactly what happens when roads get privatized.

I still don't see the issue. What is so bad there?

95   justme   2008 Feb 12, 10:32am  

SP,

Did we not all talk about what SHOULD happen to other people's wealth and income when we discussed property tax and income tax? I don't think it was just me (ahem). Or was the sin the explicit use of the word "should" (your emphasis)? I don't think that deserves being called a jackass. Chill, dude. Peace out.

96   HelloKitty   2008 Feb 12, 10:41am  

I for one am sick and tired of having to consult the tax code before I buy stuff, sell stuff, earn money, sell stock, buy stock, buy a bond(tax free muni bond?!), or quit a job, or take a job, or get a loan, or pay a loan off.

And the 'december rush' to buy crap I can write off is redonkulous. Athough I must say, being self employed is awsome for taxes compared to W2. But you pay for it in tax hassles.

The only way to 'win' is to be super well off then youd dont gotta worry. But I STILL see these people with a 1m mortgage and a 100k heloc since that is currently the most you can write off.....so even the very wealthy are running circles around the tax code...the savings/costs are just to high to ignore the #*$(@ tax code.

97   justme   2008 Feb 12, 10:44am  

Every few months I start feeling stupid when I realize that Peter P actually agrees with me and is just being the devil's advocate or the court jester, whatever you want to call it. Right??

(This one ought to be good for a "Huh?"")

:-)
:-)

98   northernvirginiarenter   2008 Feb 12, 10:48am  

@Peter P

Its like the Rhine in Germany, all you needed was some swords, some wenches to keep the swords smiling, build yourself a defendable castle and set up a gate on the river and extract a bounty from everyone passing through. What's wrong with that, anything? Its just exacting your tax from the sheeple, no? You've got to eat and you were the one that was smart enough to get the wenches for the henchmen, right? Or title from some ancestor long ago who accumulated some wealth and favor from someone.

Justme has it, where do you draw the line Peter? Just what is and should be a community function and what a governmental one? Should we outsource the entire US military industrial complex?

Now these ozzies guys talk "Reasonable return on Investment". They make arguments like, "think about the tradeoffs, how much time is saved by users, auto maintenance, gas...we offer huge value. We are saving people money and the environment while we are at it. We are green!"

That road is permanent, and I for one was not given any choice in the matter. It will be here for a very, very long time.

Its the tragedy of the commons also.

The unfortunate thing is, from my readings there is an enormous trend to deploy private equity on public infrastructure. Lots of this money chasing these deals. For instance, the Carlyle Group is chasing after a rail project here with Arab oil money. Its starts to sound almost a little tin hat, but we could end up like the Rhine in Germany, peasants paying tolls to private concerns just to move around the country. And these private concerns just happen to be owned by foreign sovereigns.

China seems awful freewheeling with all that foreign reserve, maybe we could talk them into building bridges and infrastructure for us?

99   empty houses   2008 Feb 12, 11:19am  

ESR
I'm math challenged. Can you explain how $3 per day equals $1700 a year.
All due respect my brotha, luv your stuff.

100   B.A.C.A.H.   2008 Feb 12, 11:27am  

Really I wish we had a toll booth at the County Line of highway 237.

There was a referendum in the 1990's to impose a regressive sales tax on residence for improving public transit and expressways in the county, and it included 237. It passed and so 237 got widened along with the other improvements.

But almost all the benefit of 237 comes for nonresident wave slaves (and so, their employers) who commute from the East Bay and beyond, many of them from their MacMansions in places like Antioch or Tracy or Mountain House or whatever, congesting the roads, polluting the air,creating more demand for petrol that over 2000 Americans have died for in a war to secure, and now making a groundswell for further debasement of our currency.

The least they could do is pay a toll.

101   anonymous   2008 Feb 12, 12:09pm  

I got the math wrong somewhere, it's $1095 a year. And of course the avg. american is spending more than $3 a day on food. So, just figure the amount represented by 10% tax (it's actually a bit more than that here in Arizona) and go from there.

This is one example of how regressive taxes are in the US. So, when people say a 15% flat-tax is regressive, well, sure it is, but the taxes in place now are much, much more so.

102   B.A.C.A.H.   2008 Feb 12, 12:09pm  

Peter P Says:
February 12th, 2008 at 10:48 am
"We do need strong military though. The world is a dangerous place. Who knows, perhaps Europe will become hostile in a few decades."

Hostile, Europe?

There's another demography genocide going on there, too. But different from China, instead of just unborn femaies, it's unborn white babies. Politically correct "real" modern Europeans truly do honor their modern values of equality and egalitarianism when they practice infanticide.

If you saw the news from France a year or two ago, it doesn't take much imagination to figure out that there's a lot of nonwhites in Europe who evidently don't feel like they're being treated like they're "real Europeans".

And why should they feel so? - they haven't adopted the infanticide ethic of their adopted countries. So it may not be too many decades before the "European Union" demographic-morphes into the "European Islamic Republic"

103   anonymous   2008 Feb 12, 12:14pm  

Sybrib - the BA is one area where a person can live without a car and avoid one HELL of a lot of expense.

As per AAA figures, a few years old, the avg. McConsumer is paying about $8k a year to own and operate a car. That's about $13k a year they have to earn, since it's after-tax money.

Cars are a huge huge money sink. You can really come out ahead going car-free and just renting one when needed for a trip, or taking a cab once in a while, etc. It is not as "convenient" as having a car or three, and people see YOU not a huge penis-extension, so it can be quite a hit to the ego, but hey, for roughly $1000 a month per car eliminated? You can do it!

And most McConsumers are not going to start crowding up the bike lanes and bus stops with you, they'll keep right on driving and spending, so don't worry about that.

104   anonymous   2008 Feb 12, 12:15pm  

So, if you go car-free, who cares if 237 becomes a toll road? So you pay a little toll once in a great while when traveling by car, big whoop. Let the wage slaves driving to/from Antioch pay it lol.

105   anonymous   2008 Feb 12, 12:15pm  

See? Just talk about going car-free and end up in moderation.

It's Un-American!

106   anonymous   2008 Feb 12, 12:16pm  

LOL hostile Europe, I'll give ya hostile Europe....

Read dis: http://www.guardian.co.uk/world/2008/feb/11/usa.theairlineindustry?gusrc=rss&feed=networkfront

107   B.A.C.A.H.   2008 Feb 12, 12:23pm  

esr--

So many of the beautiful cool and hipsters just love complaining about the inconveniences they endure jetting setting all over the place. So talking heads who dominate the news media are even cooler and hipster-er so they elevate their relative importance of air travel and themselves and their air travel even more.

Just about all the flights were grounded for a couple or so days after 9/11. The world didn't stop turning (though, the rate of greenhouse emission might've abated a little bit).

I think if Europe wanted to be hostile they'd do better than that. But it will take awhile before the establishment of a European Islamic Union. Won't happen overnight.

108   empty houses   2008 Feb 12, 12:49pm  

yes, I was in Stockholm last year and there were some african guys hanging out and seeing who was the most aggressive towards the passing females. They were just like american blacks. I'm not sure why I was surprized or had different expectations. They were basically like a bunch of east Oakland thugs.
Swedes seem very calm and passive. It seems that if you want to get away from the barbarians, you move to colder climates. I wonder how those african dudes hold up in the winter time with the short days.

I think Europe needs to wake up and get control over their borders, if it's not too late.

109   Peter P   2008 Feb 12, 1:03pm  

Every few months I start feeling stupid when I realize that Peter P actually agrees with me and is just being the devil’s advocate or the court jester, whatever you want to call it. Right??

I am more agreeable in person. :)

110   Peter P   2008 Feb 12, 1:04pm  

I think Europe needs to wake up and get control over their borders, if it’s not too late.

It is not a border issue. It is a welfare-state issue.

Dismantle the welfare state and we need no borders.

111   Peter P   2008 Feb 12, 1:09pm  

It seems that if you want to get away from the barbarians, you move to colder climates.

I have a theory: in "colder" places, there are four distinct seasons, which allows a variety of food. I believe the development of a culture has much to do with its cuisine.

112   anonymous   2008 Feb 12, 1:12pm  

No, it's not the welfare state, it's that Folkishness has been made just about illegal by the You-Know-Whos who control so much over there, just like over here.

Germany in the 30s and 40s had a wonderful welfare state, as long as you were German. The successful welfare states of the Scandanavian countries work because there are not a hell of a lot of non-Aryans there.

Political Correctness is going to kill Europe and kill off a lot of whites. I hope we wake up in time.

Birthrate is negative in white European countries, as it should be to be in balance with Earth, all fine and good. The problem is the 3rd-worlders, the nonwhites, need to have their birthrate decreased MORE.

113   northernvirginiarenter   2008 Feb 12, 1:20pm  

Interesting times in which we live. I've tried to ignore the immigration issues as much as possible, as I've little patience with the ignorance, intolerance, and racism that often colors the discussion.

Around here, eyes are on some of the most aggressive anti-illegal immigrant measures nationwide. Local LE can ask for papers now and execute some deportation process without getting INS or Feds involved. Its had an interesting economic effect. Two large latino communities are up in arms and are being decimated. Folks are fleeing. All the business infrastructure supporting these communities is crashing. Of course, and big suprise, housing values are also crashing in these areas. Local tax base is crashing. Massive looming government budget shortfalls.

You get what you ask for. Its all so unfortunate, on many counts.

I've been reading about the coming "boomer" bust, its interesting that we could see a massive exflux of older americans to "retire" in sunny Mexico, as they cannot afford to do so here, while at the same time realizing an significant influx of younger production workers. A fine trade for us in my opinion.

The only valid reason we might not want more immigrants within the US is that our lifestyles are so environmentally unfriendly, the planet cannot take any additional americans.

114   Peter P   2008 Feb 12, 1:23pm  

The successful welfare states of the Scandanavian countries work because there are not a hell of a lot of non-Aryans there.

They kind-of work because they have natural resources.

Canada is quite diverse yet they have fewer issues. This is because they have gold, oil, water, timber, etc.

The negative birthrate in Europe is partially caused by the welfare state with high tax rate and small homes. There is no reason to have children.

115   Peter P   2008 Feb 12, 1:27pm  

The only valid reason we might not want more immigrants within the US is that our lifestyles are so environmentally unfriendly, the planet cannot take any additional americans.

How so? Pollution is much more than carbon emission.

The concept of "global warming" is man-made.

The concept of "global warming is man-made" is make-believe.

116   northernvirginiarenter   2008 Feb 12, 1:39pm  

@Peter

Respectfully, I strongly disagree. I think you stand alone at this point, with maybe Mobil's paid pseudo-scientists, as the last remaining voices against man made climate change. The evidence is so strong, wide, and compelling I can't even begin to address it here with you.

We are radically changing our environment, with unknown causes and effects. And consequences.

117   Peter P   2008 Feb 12, 1:45pm  

I do not disagree that the climate is changing. However, I am not convinced that such change is caused by human activities.

Here is a brief history of global warming:

http://www.john-daly.com/history.htm

The world faces much greater threats nowadays. Don't get me wrong. I love the environment as much as anyone. However, to me, it is more important to have clean drinking water aka blue gold.

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