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  • Pingback: The Least Bad Tax – Liberty Community
    October 11, 2017
  • Ben Jamin'
    October 11, 2017

    The LVT isn’t technically a “tax”. A tax being a coercive deduction as a % of income, capital or transactions for benefits the payer may or may no receive. Taxes are immoral as they in effect give everyone a property right over something they themselves did not create or supply. All abrogations of property rights distorts incentives, resource allocation and result in deadweight losses.

    It should be noted that because of the way land is currently treated as private property, it leads to misallocation and over consumption of immovable property. Thus the LVT isn’t “the least bad tax”. It corrects existing market distortions, increasing our stock of wealth and welfare. It is therefore a good thing, in and of itself.

    The LVT is rent. There is no economic difference. The only difference is who collects. It is a compensatory payment to those excluded from valuable resources supplied by nature/god. Not only is that fair, but it is optimally efficient. Only when such a payment is made can the market optimally allocate those resources to those willing and able to put them to their most productive use.

    Peace and prosperity is based on just property rights. No one and nothing can claim a property right over something that does not rely upon the existence of humans to supply it. Turning (economic)land, which is by definition irreproducible, into private property means inequality and dysfunction are baked into our economies and our societies. Its control has directly or indirectly, been the cause of all human conflict.

    Even for a peaceful and prosperous anarchy to exist, a LVT would be a prerequisite. Indeed, when we do finally learn what to share, and what not to share, we will move a giant step towards living in such a society, free from the overweening state apparatus needed to mitigate the injustice of our current paradigm of property rights.

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