Raising taxes on land value under a split-rate system can increase land value per acre. Residential land is more sensitive to these changes than commercial or industrial land.
A tax credit provision alongside moving from single-rate to split-rate property taxing could mitigate regressive tendencies.
The least wealthy are mostly likely to face tax increases via LVT.
The median average change in tax liability after revenue-neutral LVT was -28.6%.
Owners of properties with high land-to-improvements ratios (like car dealerships) will tend to experience an increase in their tax liabilities when moving from uniform property taxation to split-rate land value taxation.
Pairing a national LVT with a UBI funded by the revenue would provide a net gain to two-adult households with property values at $500,000 or less.
show all Insights
CEO compensation has grown 940% since 1978
Voice at Work
Redistribution, Inequality, and Growth
Codetermination and the Democratic State
NIT Picking: The macroeconomic effects of a negative income tax
show all Sources
Charalambos G. Tsangarides
Jonathan D. Ostry
show all Authors
Social Wealth Fund
Land Value Tax