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Culture War Roundup for the week of October 10, 2022

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The recent Georgist uprising in the rat-sphere seems to be spreading outward, and gathering steam if anything. Lars Doucet, who wrote the original ACX post that blew up, is now releasing a book called Land is a Big Deal which summarizes his writings thus far.

There was also a major takedown of Detroit land assessment practices by a major land parcel data collector, ReGrid that dropped a few days ago. Major takeaways:

  • Property tax assessment is widely variable - some houses have *double* the tax burden of identical houses literally across the street.
  • Landowners tend to have far better valuations (i.e. pay less taxes) than homeowners, probably because they have more time/incentive to protest valuations.
  • Poor taxing and tax foreclosure in Detroit are likely a large part of why the city has fallen on such hard times in recent years.

In addition, some fairly mainstream political candidates such as Chloe Brown who's running for Mayor of Toronto, seem to be gaining steam. Land value tax is a large plank in her platform.

I got interested in land reform through the original series of ACX posts, and frankly I'm surprised how interesting the problem is and how overall neglected the topic seems to be. Even extremely intelligent and well read folks I talk to about it are surprised when they learn that land value is usually just pulled out of thin air - the industry standard is to just take 25% of the purchase price and not give a shit about location or any other factors, which seems bizarre upon a critical review.

I've seen some discussion about Georgism/LVT here, but curious if anyone else has been following this?

Also, what are the arguments against LVT, besides low-effort "taxes are always bad and raising them is evil?" Genuinely curious for well thought out reasons why an LVT would be a bad idea.

Edit: For those new to this idea, a Land Value Tax in it's most basic form simply says we should tax away the value of the land, and only let people who sell land profit off of the 'improvements' they make, such as buildings, restorations, etc. For instance if you bought a piece of land and tried to sell it 1 year later off pure speculation, doing nothing to the land, you would not receive any profit.

Also, what are the arguments against LVT, besides low-effort "taxes are always bad and raising them is evil?"

Still low-effort is "it's communism, but only with land". But given how bad communism has turned out, I think it's sufficient. The Georgist LVT is equivalent to the government owning all the land and leasing it out to the highest bidder.

One might equally say (and indeed Robert Nozick and others have said) that taxing income is slavery insofar as it forces people to do (fractional) unpaid labour, with the threat of force as ultimate guarantor. In both cases, I think it is a form of what Scott has called the worst argument in the world. If it did turn out that income tax was legitimately conceptually very close to slavery or LVT to Communism, it would be entirely reasonable to say, “huh, I guess at least one form of slavery/Communism is relatively unproblematic”.

Income taxes aren't slavery because they don't force you to work. A 100% land value tax really would be like confiscation of property-in-land.

Of course they force me to work. Without income taxes, I’d be already retired, instead, I have to work for couple more years.

Yeah, the income equivalent would be a... education-scaling poll tax, which would 100% be considered unacceptable by the exact same people pushing this. George Mankiw once trollishly proposed taxing height in a similar way, since it correlates so closely with earning potential.

The fact that human capital can't be easily taxed is pretty close to a grand unified theory of 21st century American politics, really.

The Georgist LVT is not fractional; it really is equivalent to the government owning all the land.

People keep bringing this up, but doesn't the government already own all the land? You have to pay property tax on it...

The distinction here is that the government is capturing the appreciation of land, or value not directly added by the landowner.