Inequality

insights

Raising taxes on land value under a split-rate system can increase land value per acre. Residential land is more sensitive to these changes than commercial or industrial land. A tax credit provision alongside moving from single-rate to split-rate property taxing could mitigate regressive tendencies. The least wealthy are mostly likely to face tax increases via LVT. The median average change in tax liability after revenue-neutral LVT was -28.6%. Owners of properties with high land-to-improvements ratios (like car dealerships) will tend to experience an increase in their tax liabilities when moving from uniform property taxation to split-rate land value taxation. Pairing a national LVT with a UBI funded by the revenue would provide a net gain to two-adult households with property values at $500,000 or less.

sources

CEO compensation has grown 940% since 1978 Voice at Work Redistribution, Inequality, and Growth Efficient Redistribution Codetermination and the Democratic State NIT Picking: The macroeconomic effects of a negative income tax

authors

Julia Wolfe Lawrence Mishel Benjamin Schoefer Simon Jäger Jarkko Harju Charalambos G. Tsangarides Andrew Berg Jonathan D. Ostry

reports

Codetermination Basic Income Social Wealth Fund Land Value Tax