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1719Re: [LandCafe] Baby Steps - Was: No land price with full land tax - simply is not true

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  • Wyn Achenbaum
    Nov 13 5:02 PM
      And another thought ...

      The median home price may well be $220,000, and let's say that land is 40% of that.  But a large share of "homeowners" do not own their properties free and clear.  For the bottom 50% of us (net worth distribution), "houses" are valued at $2.241 trillion and mortgage and home equity lines are $1.520.  For the next 40% of us, houses are $9,573 and mrthel totals $3,561.  See www.wealthandwant.com/issues/ wealth/50-40-5-4-1.htm
      for details.  The data is for 2004, taken from Currents and Undercurrents, by Arthur Kennickell, et al., from the Survey of Consumer Finances.

      Wyn


      Sean Brooks wrote:

      1) it's a mistake to say that land is the most valuable asset people have:
      (US figures)
      Median home price is ~$220,000.
      Land portion of this is probably 30% - $66,000 - or less.
      So already, their home, at $154,000 is worth more than their land.

      2) Their land, at $66,000, might have an annualized value of $6,600/y.
      The median 4 person household income in the U.S. $65,000/y, 10x the value
      of their land.





      So we have their labor, and their house, which are already worth more than
      their land.

      Furthermore, the initial steps towards LVT, a dual rate property tax,
      financially benefits more homeowners than it hurts.

      Likewise, an increase in LVT collected, concurrent with a reduction in wage
      taxes, should benefit the vast majority of the population, who pays far more
      than $6,600 in taxes on wages.

      Sean



      
      
      
        Achenbaum
      webster, http://www.wealthandwant.com ... toward abolishing poverty
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