Common Wealth Canada
@commonwealthcanada
Texas has high property tax but no state income tax. As Canadians grapple over new property tax hikes, it's a good chance to understand this trade-off. Property tax is least damaging and LVT is even better. It could replace more harmful taxes on income.
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Economists on the left and right agree that the fairest tax of all is NOT on what you earn from work or building homes, but on what you don't earn from rising land value.
If we want affordable homes, we must break our addiction to high and rising home prices, which come mostly from land values.
At the root of our housing crisis is the collective desire to treat homes as an investment, not just a place to live. How do we turn that around?
BC land value "increased by over $1 trillion over a decade. It tripled." — Paul Finch, President of BC General Employees' Union This is the largest transfer of public to private wealth happening before our eyes.
You've heard of universal basic income. What about universal basic capital? Billionaire Nicolas Berggruen says it's how we tackle inequality and give citizens a stake in a nation's success. "As opposed to taxing the robots, why not own the robots?"
B.C. could eliminate taxes on income, property, transfer, and SVT with a single tax on land value. It could leave most households ahead and make the tax system much fairer.
Our biggest challenges in housing, poverty, and productivity stem from our relationship to land. No policy will make homes affordable or end poverty without making land a worse long-term investment.
Many people wonder why land value tax won't just raise rents. Answer: you can't create or destroy land. That's why economists consider it the 'least bad' (even 'perfect') tax. It could lower income or property taxes and encourage more housing supply.
Paying everyone dividends from wealth we all have a moral claim to - whether that's natural resources, social wealth funds, or AIs trained on our data - is how we achieve Keynes' vision of 20-hour workweeks. It's how we achieve a Star Trek economy.
"We have enough flippin' tax" Yes, on things that make society better and more productive, like work and building homes. We should shift those taxes to land value instead.
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