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Wealth and Want | |||||||
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Jeff Smith and Kris Nelson: Giving Life to the Property Tax Shift (PTS)
John Muir is right. "Tug on any one thing and find
it connected to everything else in the universe." Tug on
the property tax and find it connected to urban slums,
farmland loss, political favoritism, and unearned equity
with disrupted neighborhood tenure. Echoing Thoreau, the
more familiar reforms have failed to address this
many-headed hydra at its root. To think that the root
could be chopped by a mere shift in the property tax base
-- from buildings to land -- must seem like the epitome
of unfounded faith. Yet the evidence shows that state and
local tax activists do have a powerful, if subtle, tool
at their disposal. The "stick" spurring efficient use of
land is a higher tax rate upon land, up to even the
site's full annual value. The "carrot" rewarding
efficient use of land is a lower or zero tax rate upon
improvements. ... Good for the economy, the PTS is also good for the eco-system. Were land levied, the owners of the most valuable sites would feel most pressure to develop; their sites tend to be closer to the city center. Hence those owners draw any needed development, infilling cities, sparing suburbs further encroachment. Other highly valued sites are those rich in natural resources. Again, using them more intensely frees up sites of lesser natural endowment. Thus, besides conserving sites, the PTS also conserves resources. A big problem needs a big solution which in turn needs a matching shift of our prevailing paradigm. Geonomics -- advocating that we share the social value of sites and natural resources and untax earnings -- does just that. Read the whole article Mason Gaffney: Economics in Support of Environmentalism
Urban
Sprawl
We have met the enemy, and it is US (Urban Sprawl). Let's analyze this beast, US. A. Development is not identical with Sprawl Many people carelessly equate urban growth and urban sprawl, but they are not the same, not at all. Cities may grow like the posh upper East Side of Manhattan with 100,000 per square mile, or San Francisco with 15,000, or Riverside, California with 2500, or Oklahoma City with 734. Metropolitan regions are even more varied. We have seen that 250 million Americans could fit nicely into a small part of southern California, were it compactly settled at moderate urban densities that are actually found in practice, as in the upper middle class suburb of Whitefish Bay, Wisconsin (10,000 per square mile). Urban sprawl, which creates a psychological effect of great crowding, is not the product of development as such, but of leapfrogging. Leapfrogging means chaos, with development in the wrong places and times. Infilling, on the other hand, is anti-sprawl. It is the cure for sprawl. ...
Proactive solutions
How do we dig out from this one?
Those are the carrots. A good stick is also needed. We have seen how leapfrogging results from the scattered locations of motivated sellers. We can motivate sellers near-in, and in compact increments as we expand spatially, by raising land taxes there. Proposition 13 makes this difficult, but not impossible: many special assessments have the essential motivating quality of land taxes, with a different legal form, that exempts them from Proposition 13.
I could wax rhapsodic about the results to expect
from such taxation, but have done so elsewhere and will
leave it with a word: visit Sydney, Adelaide, Brisbane,
Copenhagen, or Johannesburg, which have made use of this
principle to excellent effect..... read the
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