In the 19th Century, American economist, Henry George proposed the idea of the Land Value Tax and he immediately got opposition from “mainstream” economist because it is pro-community. That opposition continues today, modern economist are the high priest of a political system that is pro-wealth and pro-elitist. They prefer privatization and the exhaustion of all the natural resources. Land is a natural resource because unlike manufacturing more cannot be produced.
One of the easiest ways to generate income for public programs is the Land Value Tax.
Traditional forms of revenue generation are not doing the trick. They are unreliable and not very equitable. Plus the taxes are on the backs of those that can least afford it. This proposal does not stifle the free markets, labor or production. For those reasons the Land Value Tax (LVT) is more than capable of funding government and its programs while not penalizing the people.
Taxes penalize the people, the workers, tax codes reward people for avoiding their tax obligations. The only way to make a government self-sufficient is the LVT. At present the only answers are taxes such as payroll, excise, sales, but the truth is that all taxes and tax schemes that are proposed then passed have done little to help the financial health of a state.
When the LVT is used then most other taxes can be eliminated altogether. It will revive the housing sector, the production sector and the consumer sector. For when the people have more cash on hand they will spend it, something that is not going to happen if there is an increase in taxes. And the increase will do little to bail out the government from a monetary meltdown.
The benefits to the community are numerous, among them are: 1) economic–the LVT encourages land to be put on the market at lower prices–will lead to an end to land speculation, 2)–social–the tax revenue will benefit the whole society from education to public works, 3)–logistics–the tax is not easily evaded and easily collected.
The best answer to reviving a community, city or state is to impliment the LVT. Without it there will be constant shortfalls in revenue which will mean more cuts to services to the community. Then other taxes will need to be raised to make up for the shortfalls. The LVT can and will avoid any of this suffering.