Land Value Tax: A Comprehensive Analysis of Arguments For and Against
Land Value Tax (LVT) represents one of the most debated fiscal policy reforms in contemporary economics. This analysis examines the comprehensive arguments supporting LVT while addressing the main objections raised by critics. Drawing from extensive research and economic analysis, this article presents both the theoretical foundations and practical considerations of implementing a land value taxation system. What is Land Value Tax? Land Value Tax is an annual charge levied on the rental value of land, excluding the value of buildings and improvements. The tax captures the "site premium" - the additional value that location provides to a property. Under a full LVT system, this would replace or significantly reduce taxes on income, employment, and consumption. Core Arguments FOR Land Value Tax 1. Taxation Should Fund What Creates Value Government spending and civilized society create land values. Public services including defense, law enforcement, infrastructure, education, a...