The Ultimate Tax Reform

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Here, Fred Foldvary, professor of economics at Santa Clara University, gives us an overview of how Land Value Taxation can be applied. Fred writes from a Libertarian perspective, demonstrating how land value taxation not only does not decrease production, but actually increases it more than would otherwise occur without land value taxation.


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2 Responses to The Ultimate Tax Reform

  1. This paper starts out, “The U.S. tax system is widely perceived as too complex, too intrusive, and too demanding of workers’ paychecks. Taxes today claim a greater share of the average family’s budget than food, clothing, housing, and transportation combined.*1* In 2005, the average American had to work 107 days just to pay taxes, compared to 44 days in 1930.*2*

    But what if we didn’t take our taxes from anyone’s paychecks? And no, that doesn’t automatically mean anyone is advocating the so-called “FairTax” which is a tax on one’s consumption, with some portion exempted to supposedly untax poverty-level consumption.

    “The Ultimate Tax Reform” shows us how we can unburden the economy, and unburden those who work and want to work. Fred’s paper shows us natural public revenue, and, it seems to me, provides the antidote to Leona Helmsley’s truth about our current system of taxation, under which only the little people pay taxes.

  2. Jacob Shwartz-Lucas says:

    Great comment Wyn. Complexity is also an issue. The more complex the tax system, the greater the opportunity for the wealthy to hire lawyers to exploit loop holes, while the “little people” are stuck footing the bill. Simplify the tax system and it is harder to exploit such loopholes.

    It is also more appropriate for land value taxes to be publicly recorded, whereas this is not appropriate for sales tax for example. Land Value Taxation lends itself to maps, which makes interpretation of large amounts of data easier for the common person, leading to greater salience and fairness.

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