The nice thing is that lowering other taxes automatically increases the LVT tax take via higher property prices.
You can see that dynamic on the border between Switzerland and Germany: Swiss income taxes are a lot lower, so their property prices are higher. (You can probably see similar things happening on some borders between American states?)
Without an LVT, those higher property prices only benefit the land owner. With an LVT, the government gets some incentive to lower those taxes.
> If the government turns on an LVT, do you trust them to turn off other forms of funding? Or do you think they're just going to decide that their income went up?
I guess it depends. Governments have an incentive to get themselves more budget, but taxes also aren't just ratcheting up all the time. Eg the US still has lower income taxes than most of Europe. And tax rates also change over time.
You can see that dynamic on the border between Switzerland and Germany: Swiss income taxes are a lot lower, so their property prices are higher. (You can probably see similar things happening on some borders between American states?)
Without an LVT, those higher property prices only benefit the land owner. With an LVT, the government gets some incentive to lower those taxes.
> If the government turns on an LVT, do you trust them to turn off other forms of funding? Or do you think they're just going to decide that their income went up?
I guess it depends. Governments have an incentive to get themselves more budget, but taxes also aren't just ratcheting up all the time. Eg the US still has lower income taxes than most of Europe. And tax rates also change over time.