Slate: How Much Money Could LVT Raise?
|November 13, 2013||Posted by Staff under Good Press|
For a long time the economics profession has quietly noted that a land value tax — LVT — is economically efficient but left the subject for more intellectually rewarding pursuits. The result is a frustrating dearth of scholarship on the subject. The few detailed papers that do exist suggest land taxes can replace most levies on labor and capital.
The most comprehensive work on this subject I could find is Steven Cord’s 1985 paper in the American Journal of Economics and Sociology, “How Much Revenue Would a Full Land Value Tax Yield.”
What’s fascinating is that as I’ve argued before, the 1980s probably represented the trough of land rents relative to income of the rich. As inequality increased, the ultimate venue of conspicuous consumption is beachfront property or a panoramic view of Central Park. As Thomas Piketty and Gabriel Zucman document in an important paper, total wealth-to-income ratios have doubled over the past several decades to a level last seen since the Industrial Revolution.