Detroit wants to be the first big American city to tax land value (economist.com)

Article summary

Detroit is considering implementing a land value tax, which would tax the value of land rather than the value of the property on it. The idea is based on the economic theory of Georgism, which aims to reduce inequality and promote more efficient use of land. The proposed tax is seen as a potential solution to the city's decline and could incentivize landowners to use their land more productively. However, the implementation and assessment of such a tax pose significant challenges.

Main themes

• Land Value Tax
• Georgism
• Urban Development
• Economic Inequality
• Taxation Policy
• Land Use Efficiency

What commenters say

• Implementing a land value tax could help reduce inequality and promote more efficient use of land by incentivizing landowners to use their land productively.
• The assessment of land value is a complex task that requires careful consideration of various factors, including location and market conditions.
• A land value tax could lead to a more efficient allocation of resources, as it would encourage landowners to use their land for its most valuable purpose.
• The proposed tax may not be effective in addressing the city's decline, as it may not provide sufficient incentives for landowners to develop their land.
• The tax could be difficult to implement, particularly in cases where the government holds the land, as it may lead to conflicting interests between different levels of government.
• A land value tax would reward landowners who use their land to produce commercial value, while penalizing those who hold land speculatively.
• The tax could lead to an increase in the development of parking structures, as landowners seek to use their land more efficiently.
• Opponents of the tax argue that it may not be effective in achieving its intended goals and could lead to unintended consequences, such as increased costs for landowners.