Real estate(the land, not the mansion) is a really good long term storage of wealth as it is fixed, finite, and doesn't depreciate in value except through market trend and it basically only go up as long as the economy itself grow.
However, this causes land speculation which drives the price of land up, and people do not want to develop properties because it would means investing in buildings which costs money to build and maintain and entails risk and ongoing effort.
The correct solution to this is a land value tax, which if implemented correctly, should drive down the price of land down to zero and force Jack Ma's family to either commit to actually investing in UK's economy or park their wealth elsewhere.
A land value tax (LVT) is a tax on the unimproved value of land only, while a traditional property tax is levied on the combined value of both the land and any structures or improvements on it
. Consequently, LVT taxes the land's community-created value, which is not the result of the owner's labor, and does not tax improvements like a house. This encourages development because it disincentivizes property owners from letting vacant land sit idle and penalizes land speculation.
I don’t get why people ask questions like this nowadays when the Wikipedia article or an LLM will give you a much better answer than what someone could type in a reply.
Real estate(the land, not the mansion) is a really good long term storage of wealth as it is fixed, finite, and doesn't depreciate in value except through market trend and it basically only go up as long as the economy itself grow.
However, this causes land speculation which drives the price of land up, and people do not want to develop properties because it would means investing in buildings which costs money to build and maintain and entails risk and ongoing effort.
The correct solution to this is a land value tax, which if implemented correctly, should drive down the price of land down to zero and force Jack Ma's family to either commit to actually investing in UK's economy or park their wealth elsewhere.
What's the difference between land value tax and property tax?
A land value tax (LVT) is a tax on the unimproved value of land only, while a traditional property tax is levied on the combined value of both the land and any structures or improvements on it . Consequently, LVT taxes the land's community-created value, which is not the result of the owner's labor, and does not tax improvements like a house. This encourages development because it disincentivizes property owners from letting vacant land sit idle and penalizes land speculation.
I don’t get why people ask questions like this nowadays when the Wikipedia article or an LLM will give you a much better answer than what someone could type in a reply.
https://en.wikipedia.org/wiki/Land_value_tax
also take a look at https://en.wikipedia.org/wiki/Georgism
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