• Cryophilia@lemmy.world
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    1 year ago

    Sounds like it could have a lot of loopholes like any tax scheme but as long as those are addressed, this looks like a reasonable proposal.

    • Fried_out_Kombi@lemmy.worldOPM
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      1 year ago

      That’s actually the beauty of LVT – the government already knows who owns what land (the landowner has the deed), and land can’t be hidden or offshored. You may try having shell companies, but the tax bill comes due regardless. The reason shell companies work for avoiding other taxes is because they can allow you to offshore your on-paper profits to tax havens. LVT doesn’t tax you on profits, so it doesn’t matter where the profits are on paper. Similar for income or sales taxes, income and sales can be done cash-only and hidden.

      • ShoeboxKiller@lemm.ee
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        1 year ago

        To somebody else’s point, how would this compare to the what single family home owners pay now?

        Where I live we have about .09 acres of land our house sits on and we pay ~$3000/year.

        • biddy@feddit.nl
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          1 year ago

          You might live in a place which already has some form of land value tax. Although a key distinction is that LVT is a tax on just the value of the land, not the value of the entire property that includes buildings, landscaping, ect. …

        • w2qw@aussie.zone
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          1 year ago

          It really depends on where the land is as it’s based on value. If you are talking about replacing property taxes with land value taxes typically it’s just a rate on the value but in this case it’s just the land value so a higher rate but only applies to land. If you could figure out the total land value in your neighbourhood you could figure it out.

          As for who is affected, single family homes on the outskirts probably see a drop in taxes while those in the inner city and vacant plots see a large increase.

          • ShoeboxKiller@lemm.ee
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            1 year ago

            So it disincentivizes living in an urban setting an penalized fixed income people already in those homes?

            • w2qw@aussie.zone
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              1 year ago

              Not necessarily the first as long as it’s done in land efficient way and the second if they are unwilling to move but otherwise yes.

              • ShoeboxKiller@lemm.ee
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                1 year ago

                Oh boy! I guess I see why people are against it. Probably should come up with a better plan.

                • w2qw@aussie.zone
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                  1 year ago

                  Yeah you aren’t wrong there. Figuring our a way to placated those groups is required to get it to be implemented.