The LVT FAQ
I have seen a pattern of the same objections or concerns about the LVT and I hope this FAQ will answer or calm some of those.
Q: Wait. I know of this tax and I hate it. I pay it every year.
A.) Actually, you pay a hybrid bastard tax that mostly taxes the buildings and not the land. This tax is both regressive and counterproductive. If you want to build a new building on the land, your taxes will go up. If you want to paint your house, your taxes will go up.
Q.) So Donald Trump pays the same taxes as I do, if we have the same lot size. Now just hold on one cotton pickin’…
A.) Yes. However, how many skyscrapers have you seen in the middle of a cornfield and how many single family homes have you seen in downtown
Q.) What about commercial use lands?
A.) Commercial properties would get taxed at the same rate as any other property. Golden Sachs in Downtown Manhattan would pay a lot in tax, while Buck’s off route 22 in the Town of
Q.) What about those empty lots I see in the middle of cities? Won’t this prevent them from every building on the land?
A.) Taxing the land according to its value will make it so people will have to invest money in the land and improve it.
Q: Why are you a proponent of this method of taxation?
A.) I am a believer in fair and just taxation and I do not believe in the government subsidizing the ultra-rich. In short.
Q.) I live out in rural country. It sounds to me like my taxes will go up because I own land.
A.) Probably not. If you are a middle class family with a couple acres of land, a house, a dog, a couple children pounding around, maybe a few chickens, most likely your taxes will go down. If you own more then just a house, like a garage, swimming pool, deck, barnes, then your taxes will go down a good deal.
Q.) What about my job? Will they need to move to china?
A.) No. A tax on land will discourage firms from moving away and will cause them to invest more money in labor and capital which in turn requires more labor. Why? because a tax on land comes out of rent and does not effect the companies bottom line.
Q.) Wait. What about my grandmother? She’s old and retired and widowed. What about her?
A.) There are many proposals on how to take care of those who in their golden years. One popular example: tax deferred until death against the equity in the home or other asset and the other tax or until sale of the home.
Q.) But, the President gave me free money and told me that he will give me more if I’m a good boy.
A.) Did you know that real wages have declined each year since 1970’s? Oh, don’t take my word for it.
This document is “working” and new questions are always welcome.