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Pay-Fors

Public policies that require significant revenue often meet an important question: "how will you pay for that?" Pay-fors are potential sources of funding.

While it should be noted that tax revenue does not actually fund government spending, pay-fors are important to manage inflation by offsetting government spending.
Using conservative estimates, LVT could raise enough funding to cover the entirety of either Defense spending, Social Security, or Medicare + Medicaid (roughly $1.1 trillion per year). More optimistic estimates suggest LVT revenues could reach $3.36 trillion per year, nearly enough to cover the entire federal budget. The Pittsburgh experience affirms standard economic theory, predicting that a major increase in land value taxation should be neutral. That is, have little impact on development decisions. Land value taxation is unique in that it can raise tax revenue without raising the adverse fiscal incentives that other tax measures impose. In 1981, a full LVT was estimated to raise 28% of national income, or $658 billion. Between 2005-2010, New York City's urban land value was worth roughly $2.5 trillion (just the land alone). In 2019, a national LVT is estimated to raise anywhere from 25% ($1.1 trillion) - 76% ($3.36 trillion) of annual federal spending, depending on methodologies used to produce estimates.
Jain Family Institute Position on Guaranteed Income The Macroeconomic Effects of Universal Basic Income Programs UBI in the US and Advanced Countries The Relative Costs of a UBI and a NIT A Child Allowance Could be Worth Eight Times the Cost The Costs and Benefits of a Child Allowance
André Victor Doherty Luduvice Jesse Rothstein Hilary W. Hoynes Philip Harvey David Koggan Laurel Sariscsany Christopher Wimer Sophie Collyer
Basic Income Land Value Tax
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