1755RE: [LandCafe] No land price with full land tax - simply is not true
- Nov 21, 2006Mark,
Yes, it is a definition, almost a truism. It is the result. It is backed
by reasoning and formulas. It is supported by the academic economists on
this list such as Fred and Nic. I have presented the arguments and the
maths. I should not need to do so again and will not be doing so. I am not
sure if it is because I have presented these arguments and maths badly or
whether some people are wedded so closely to an idea that nothing will sway
them that this discussion is still going on. You can keep making your
assertion as much as you like and it won't make it right. Let's see the
It is very important what value attaches to a site. It isn't a land 'let us
invent a figure' tax. It is a land 'value' tax.
Yes, value is subjective. I guess that means you are not one of the people
who were arguing that land value is the capitalized value of some unknown
future rents and some unknown future increase in value.
It does not matter that it is subjective. We are not interested in what
figure is in someone's head. We concern ourselves with what value the
market determines. A known value that can be proved objectively. The
buyer's subjective value of the land may have been higher than he or she
actually pays and the seller's subjective value of the land may have been
lower than the price received. They reach a price that they can agree on ot
there is no sale. Additionally, they are not alone. The presence of other
buyers and sellers in the market plays a major part in determining the
market price. A price that is on the public record.
The lawyers on the list will tell you that a lease must have a term. Why is
there this obsession with wanting to change the system of title? Do you
feel that telling people their land values will fall to zero is not enough
to ensure that there will never be political or poplar support for LVT that
you need to tell people who bought title so they would not be tenants that
they will become tenants again? I am surprised not to see people limping
around at Georgist conferences from shooting themselves in the foot. And a
few in wheel-chairs too, from shooting themselves in both feet.
Increasingly, it is of no surprise that we have been so unsuccessful. It is
a relief that the Greens and by contrast some hard-nosed economist are
starting to see the virtue of LVT. Unfettered by 19th century dogma they
are likely to be more influential.
I admire George for his ability to see what is essential and not complicate
matters by adding the unnecessary. It is not true for some of his
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