What is
land rent?
Land
rent means taxing land. Not buildings, not work, not commerce, just
bare land. Or if land has buildings (as most land has) then the
equivalent value of the land if it had no buildings.
Land
gets its value its improvements (buildings etc) and from its location.
The improvements were made by the hard work of the owners. But the
location has value because of what society does, because of roads and
schools and good neighbors.
If
society taxes buildings and improvements, it steals people’s
hard work, their time and energy, their life. Most taxation is
therefore theft. But if society taxes the location, then it simply
claims back the value it creates. Land rent distinguishes between the
individual’s property and society’s property.
Why land
rent matters
Land
rent creates fairness in the most basic of all issues: who controls the
ground beneath our feet.
Land
rent is the only rational tax, because it is based on a sound theory of
property (you create it, you own it).
Land
rent means an end to every other tax. So it becomes much cheaper to
create additional jobs and manufacture goods. So wealth increases.
Land
rent is the only tax that is not a form of theft, so it encourages
honesty and work.
Land
rent is the only way to provide enough land for everyone on earth,
because it stops land speculation, so it lowers demand for land and
hence the price of land goes down.
In
short, land rent is the simplest way to create a healthy and fair
society. This benefits nearly every area of life and solves
most of the world’s major problems.
Land
rent ensures that all land is used for maximum profit. Yet by better
measuring the value of land, it preserves forest and increases the
acreage of national parks, for reasons explained in the
“save the world” page.
The
economic benefits of land rent
If
you tax work, the amount of work goes down, because some work becomes
less profitable. But if you tax land, the amount of land remains the
same. So if you want to encourage work, you should tax land, not work.
Land
rent is the only guarantee of fair property rights. If people can
charge rent but they pay no rent themselves, eventually one person or
one elite will own everything and nobody else can have any property
unless it suits the elite. To see why, play the game Monopoly. Monopoly
is based on "The Landlord's Game," invented by Lizzie Magie as a way to
show why we need land rent.
Land
rent is the most efficient way of creating wealth because it gives
resources to those who can use them best (that is, those who can
generate the most wealth from the land).
Land
rent creates economic justice, by ensuring that everyone keeps the
wealth they create, and any extra is given back to society. So nobody
has unfair privileges, and everyone has an equal chance to succeed.
Land
rent provides a fair system for all, because it generates wealth for
society, yet it is so simple that corruption and inefficiency have
nowhere to hide.
God and
human equality
If
you believe in God, then God gave men equal rights to the land. Land
rent simply charges people who stop others from using God’s
land.
If
people are created equal, then nobody has a right to charge others for
the use of land, unless they (the land owner) also pays rent to society.
Most
people have a gut feeling that people should cooperate and be nice to
each other. A land rent system provides the basis for such a world, for
the reasons given above.
|