Re: From the rich. To the rich?

On Tue, 03 Jul 2007 02:53:32 +0000, Dan in Philly wrote:

"Dan in Philly" wrote in message ...

<snip>

I think I've got it now.

We tax away the land rents. That means that center city landowners pay more
$$ than do landowners at the city edges; that makses sense since the center
area has the best access to the surrounding productive capital and people.
It's also "fair" since land ownership often arises through questioable means
(e.g. first-come, first-served).

You can use the monies for some government services, but I'd rather have no
city government at all, so all the LVT goes back to the people. So: who
'deserves' a greater share of the $$?

All of the voters of the tax jurisdiction get an equal amount. That's
pretty straight forward. What you seem to be missing here is that the
payment is for the use of the location and those who cannot profit from
the use of the location WHILE paying the rent will need to locate their
business some other place where the rent is lower or they can fold their
tent and go home. This rent money is going to be paid regardless of who
"owns" the location. You seem to have the idea that a rentier will do
more economic good than the average person. That is standard trickle down
bogus bull***.

On land where the rent/tax is (say) 1000k$, some firms will barely be able
to pay the tax: so output = input and economic profit=0. But there will be
some more productive firms that can pay the rent and have extra $$ left over
(positive economic profits). THESE are the people and capital who are more
productive, and in turn they make adjacent land more produtive. So they
should receive the rebate.

They may or may not have income over and above the rent. But if the rent
must be paid regardless of to whom it is paid then the profitability of
the firm is not effected by LVT. As to the recipient of the rent, we have
already been through that now several times. I am a demand side man. I
say give tax cuts to the consumers and let the producers compete for the
dough.

Bottom line: pay out the monies to people & firms in proportion to the
economic profit they generate.

Bottom line: That doesn't work any better than tax cuts for the rich and
more military spending.

--
"I know no safe depository of the ultimate powers
of society but the people themselves; and
if we think them not enlightened enough to
exercise their control with a wholesome
discretion, the remedy is not to take it from
them, but to inform their discretion by
education." - Thomas Jefferson
http://GreaterVoice.org

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