Changes

Unlike [[tax]]es on labor, enterprise profits, and produced goods, a tax on land rent or land value has no [[deadweight loss]], as it does not reduce the incentives to produce.  Land has a fixed supply, so taxing it does not shrink the amount of land, nor does land flee or hide as does [[income]].  Since land receives much of its value from nearby public works and services, a land value tax returns value received, avoiding the implicit subsidy of rent and land value if these are paid for by taxing labor or enterprise.

Unlike [[tax]]es on labor, enterprise profits, and produced goods, a tax on land rent or land value has no [[deadweight loss]], as it does not reduce the incentives to produce.  Land has a fixed supply, so taxing it does not shrink the amount of land, nor does land flee or hide as does [[income]].  Since land receives much of its value from nearby public works and services, a land value tax returns value received, avoiding the implicit subsidy of rent and land value if these are paid for by taxing labor or enterprise.

The [[American]] [[economist]] Henry George analyzed and promoted land value taxation during the later 1800s, and so land value taxation is referred to as a Georgist policy.  Many economists today consider a land value as both efficient and equitable, and a shift of taxes from labor, sales, and profits to land value would make the economy more productive.

The [[American]] [[economist]] [[Henry George]] analyzed and promoted land value taxation during the later 1800s, and so land value taxation is referred to as a Georgist policy.  Many economists today consider a land value as both efficient and equitable, and a shift of taxes from labor, sales, and profits to land value would make the economy more productive.

==References==

==References==

*[http://www.progressandpoverty.org/pcontents.htm ''Progress and Poverty''] by Henry George (1879)

*''[[Progress and Poverty]]'' by [[Henry George]] (1879)

[[category:Taxation]]

[[category:Taxation]]