Tax Burden

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. 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. Adam Smith supported land value taxation, writing that the burden would fall upon owners of "ground-rent", who always act as monopolists. 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

On the The Economics of a Universal Basic Income A Critical View of Land Value Taxation as a Progressive Strategy for Urban Revitalization, Rational Land Use, and Tax Relief Land Taxes and Housing Prices Land Value Tax Analysis: Simulating the Tax in Multnomah County Land Value Tax: Can it Work in the District? “There you may behold the rent”: Effects of a UK land dividend

authors

Thomas Straubhaar Michael D. Wyatt Poul Schou Mads Rahbek Jørgensen Anne Kristine Høj Hoang The Nguyen Devin Bales Adam Rovang

reports

Basic Income Land Value Tax