Liberal and conservative economists alike - such as Paul Krugman and Milton Friedman - agree that LVT has no deadweight loss, making it an ideal tax in terms of efficiency. Or in Friedman's terms, the "least bad tax".

“Liberal Krugman and conservative Milton Friedman both seem to agree that LVT has no deadweight loss, which means LVT, unlike income and capital taxes, doesn't create a drag on productivity. This means that if we can raise enough money from LVT, we can reduce at least some inefficient taxes, such as those on labor, while keeping government spending the same. Not only could this be popular politically, it would also boost the economy.”

theoretical


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