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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. [[Progressive]]s 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. [[Progressive]]s 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. Conversely, taxing land below fair market value cheats the government out of revenue.
==References==
==References==
*''[[Progress and Poverty]]'' by [[Henry George]] (1879)
*''[[Progress and Poverty]]'' by [[Henry George]] (1879)
[[Category:Taxation]]
[[Category:Taxation]]