A revenue-neutral swap of New York City's taxes for a 21.7% land value tax is simulated to increase wages by 4% and aggregate output by 91%, while decreasing city land price by 28%, and the poverty rate by 34%.

The authors developed a computable general equilibrium model of the New York City economy, which they emphasize has significant unknowns, and we should thus interpret results lightly. A 21.7% LVT was found to be the rate that maintains tax revenue neutrality when eliminating NYC sales, capital, and income taxes.

econometric


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