J.D. Tuccille had a piece in
Reason the other day about Florida’s
grassroots revolt against property taxes, discussing a number of points, so that you don’t have to be a Georgist to be interested. Among other things, the article quotes Jared Walczak of the Tax Foundation: ”It is axiomatic that whatever you tax, you get less of,” he adds. “Taxing income means less income-producing labor and investment, for instance. But because land is an immobile asset, taxing property does less to distort market decisions than taxing income or even sales.”
Right, and this point applies to land in particular. Buildings may be fairly immobile as well, but a high property tax on buildings is likely to make people build less, and over time, result in the supply of housing, and of factories, shops, office space, etc. be lower than it would otherwise be in a jurisdiction with high building taxes. Taxing land does not reduce the supply of land at all.
Tuccille’s article also addresses the point that having to pay property taxes makes people feel that they do not really own their homes, but are de facto renters, which is true. Henry George created an obstacle to the success of the single tax movement by stating, “We must make land common property.” He proceeded to explain that he did not propose to interfere with land titles, but to make the public the effective owner by taxing the rental value of land.
I believe that people should
not have to pay property taxes on their houses, buildings, or other improvements; I also point out that while the property tax makes the government the effective partial owner of property, an income tax or sales tax makes the government the partial owner of human beings or their legitimate property. An income or payroll tax means that someone cannot keep what he earns by his own labor, and is therefore not the full owner of himself; he is to some degree enserfed. A sales tax means that someone cannot spend the money he has earned on his own needs and wants without making a payment to the government. The property tax, even on buildings, is not a worse infringement on people’s rights than these other taxes.
And now to stop posting, and start working.