Posted by ""M. Lehmann"" <email@example.com>
> How are people supposed to pay increasing land taxes? On paper, their
If governments were concerned, the simple thing to do is reduce accordingly the sales taxes and the improvement component of the property tax.
> This is a serious problem now in Florida, where increasing property
If taxes on the land were kept high, as I outlined above, which would bring land prices down fast, but with some oscillation due to time-lagging reverse tax effects, that should do a lot to end the exodus. With negligible taxes on labor --our sales tax and improvement tax--, the economy would revive.
Taxes should not be based on ability to pay, because in a downturn, exactly when more tax money is needed, there will be less of it. That land tax money comes from the free ride every landowner gets through the price increase and low tax on his land whose location value the community creates. There's nothing new about these ideas. They've been around a long time, vigorously opposed by land dealers and speculators everywhere.
> Ad valorem taxes, in general, create some kinds of ""unintended consequences""
I'm suggesting there wouldn't be a crisis with a high land tax largely replacing other taxes (I call them taxes on incentive) If you always mean by value the appraised value of the property, with no high land tax to bring it down, yes it does keep going up and up until the ""haves"" can't afford it either. ML
[Host's Note: This discussion, though interesting, has gone about as far as talking will take it. Mary has defined a number of interesting dynamic hypotheses and it seems incumbent on the proponents of change to demonstrat their validity. Since this is a System Dynamics discussion list that demonstration should be done with something more formal. Less formal responses shold be directed to Mary or one of the other posters, not the list.]
Posted by ""M. Lehmann"" <firstname.lastname@example.org> posting date Wed, 6 Dec 2006 14:47:15 -0600 _______________________________________________