Great points Max. My dissertation was on the social system of real property in Ohio's 18 most urban counties, comparing suburban and county seat commercial, residential, agricultural and industrial property, and focusing on property tax exemptions and abatements. It was partially funded by the Lincoln Institute of Land Policy. Here is a good piece on land taxation: https://www.localhousingsolutions.org/housing-policy-library/land-value-taxation/. There are still people who for want of a better term are called Georgists.
I've never studied in depth the Pittsburgh experiment and did not know about Harrisburg. I do know from building a national city-county databook database from raw census date that state capitol cities have lots of poverty. I once literally cried when my social work student bus trip from NYC to Albany came into the poor sections of Albany on the way to the capitol. I've always wanted to follow up with a study, In the Shadow of the State House: Poverty in State Capitol Cities. Part of it is the way high levels of tax exemption in such cites starve the local schools. You can see it in Lexington KY as well, Lansing, you name it
Today, tax abatements of various kinds subsidize improvements on inner city land. But no matter how you do land value taxation, the problem would be making up for the tax on improvements. Another problem would be the incentive to tear down single family and duplex homes and build what would most likely be apartment complexes. There goesAstoria, and much of Queens, and its many single family homes. So, homeowners would rebel against such a plan.
Finally, church and other property used for ecclesiastical purposes would likely be sold, and the facilities now used for religious purposes sold for the cash it would bring to the denomination, the better to relocate to the suburbs. I also worry about parks and graveyards. Once land value is king, every inch of our earth is likely to be monetized and property tax exemptions of all kind would likely see their demise.
I don't understand Max's point about land being unable to run. This is true, but renters can run, depressing the value of land. Newark and Jersey City would be happy to host the NYC financial services/law megaplex, and have a history of very accommodative taxation. It's just as easy to go from Jersey City to midtown NYC as it is from downtown NYC to midtown. Like any local tax, Georgeism works best when there are significant barriers to moving.
Speaking of Newark, its mayor--Ras Baraka--sounds every bit as "radical" as Mamdani, but has kept everybody happy, including local business. The same was true of Bernie Sanders when he was mayor of Burlington. Of course, the NYT will continue to play "oogedy-boogedy: a scary socialist" until about two years into the Mamdani administration.
By ordinary micro analysis, which can clearly be wrong, an LVT should not change the market rent on a property. It reduces the selling price of the property, since by the LVT a component of the capital value has been expropriated by the State. But a renter would have no reason to run, nor would the owner get away with charging an over-market rent.
Max, it’s good to see you are as perceptive and well-versed as ever. The Philadelphia Inquirer once published an article I wrote about Henry George. I still believe his work has yet to receive the coverage it deserves.
Great points Max. My dissertation was on the social system of real property in Ohio's 18 most urban counties, comparing suburban and county seat commercial, residential, agricultural and industrial property, and focusing on property tax exemptions and abatements. It was partially funded by the Lincoln Institute of Land Policy. Here is a good piece on land taxation: https://www.localhousingsolutions.org/housing-policy-library/land-value-taxation/. There are still people who for want of a better term are called Georgists.
I've never studied in depth the Pittsburgh experiment and did not know about Harrisburg. I do know from building a national city-county databook database from raw census date that state capitol cities have lots of poverty. I once literally cried when my social work student bus trip from NYC to Albany came into the poor sections of Albany on the way to the capitol. I've always wanted to follow up with a study, In the Shadow of the State House: Poverty in State Capitol Cities. Part of it is the way high levels of tax exemption in such cites starve the local schools. You can see it in Lexington KY as well, Lansing, you name it
Today, tax abatements of various kinds subsidize improvements on inner city land. But no matter how you do land value taxation, the problem would be making up for the tax on improvements. Another problem would be the incentive to tear down single family and duplex homes and build what would most likely be apartment complexes. There goesAstoria, and much of Queens, and its many single family homes. So, homeowners would rebel against such a plan.
Finally, church and other property used for ecclesiastical purposes would likely be sold, and the facilities now used for religious purposes sold for the cash it would bring to the denomination, the better to relocate to the suburbs. I also worry about parks and graveyards. Once land value is king, every inch of our earth is likely to be monetized and property tax exemptions of all kind would likely see their demise.
I don't understand Max's point about land being unable to run. This is true, but renters can run, depressing the value of land. Newark and Jersey City would be happy to host the NYC financial services/law megaplex, and have a history of very accommodative taxation. It's just as easy to go from Jersey City to midtown NYC as it is from downtown NYC to midtown. Like any local tax, Georgeism works best when there are significant barriers to moving.
Speaking of Newark, its mayor--Ras Baraka--sounds every bit as "radical" as Mamdani, but has kept everybody happy, including local business. The same was true of Bernie Sanders when he was mayor of Burlington. Of course, the NYT will continue to play "oogedy-boogedy: a scary socialist" until about two years into the Mamdani administration.
By ordinary micro analysis, which can clearly be wrong, an LVT should not change the market rent on a property. It reduces the selling price of the property, since by the LVT a component of the capital value has been expropriated by the State. But a renter would have no reason to run, nor would the owner get away with charging an over-market rent.
D'oh. I think I got it. If the state is only taxing pure rent (in the economist's sense), there are no effects on anybody's behavior.
Yes Dino yes
We need site tax now
Well call it
The max tax if we have to
Max, it’s good to see you are as perceptive and well-versed as ever. The Philadelphia Inquirer once published an article I wrote about Henry George. I still believe his work has yet to receive the coverage it deserves.
Thanks, Ed.