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Incentive Taxation Blog

How to mend the Property Tax

Assaults on the property tax have been commonplace in the US (and Australia,New Zealand, etc.) in the past few decades.  We think that the property has a lot wrong with it; but its a situation that calls for a scalpel not an atom bomb.  Here are some basic alternative solutions, including the land value tax as a way to abolish the tax on buildings.


Four Ameliorations for Assessment Increases or Tax Increases: an Analysis
William Batt, Ph.D., Joshua Vincent, ED

Flint Michigan: a bold Mayor with a bold idea.


Flint Mayor Dayne Walling
Flint's Dayne Walling - a Mayor open to ideas and opportunities for his city

The story ofFlint Michiganneed not be retold here. The story of Flint is the story of many Rustbelt cities from Troy New York to St. Louis Missouri.  Existing for decades as a city with good jobs for all that wanted one, a city that rewarded enterprise and hard work. The downturn of the US automobile industry  was recently (But chimerically) reversed by pumping billions of taxpayer dollars to Chrysler and General Motors, yet has had little effect on the city itself.

Canberra: Decision to reinstate land value tax on track

Canberra Plan 1900s
 Canberra Today

In the early part of the 20th century, a rising and confident Australia decided to create a national capital.  It was to be a planned city, and surprisingly enough an American namedWalter Burley Griffinwonthe competition to design Canberra. The Griffin design was linked theoretically and contextually to the first stirrings of modern planning and to the visionary land economics of the classical economists.  

In the case of Griffin, it was his commitment and enthusiasm to good economic sense and economic justice learned through his lifelong reading of the American economist Henry George.

Philadelphia faces a true Rubicon: the time for reassessment is now.

Philadelphia Pennsylvania like most cities, counties and states have had to deal with tight budgets for nearly half a decade.  For many reasons, not least of which are legacy expenses, revenue requirements will be increasing even as economies at the local and regional level still  react sluggishly as the great recession of 2008 begins its ebb tide.
 
 
A complicating factor in Philadelphia's fiscal struggle is the reality that it's tax system is nearly unique in United States as the

Eliminating the property tax? It must not happen, but we’ll see what happens.








Independence? Perhaps, but not likely

Recently, an active and conservative member of the Republican Party in central Pennsylvania sent UrbanTools a copy of something called the"Property Tax Independence Act"  (PTIA) with the interesting subtitle of "Liberty Equality and Prosperity".  The legislation – more accurately a proposal for a constitutional amendment in the state of Pennsylvania – Is given a seemingly official sobriquet of “House Bill 1776.” 

As yet, this is not an actual bill however.

India discovers vacant land may be a bad thing


The past 15 years have been very kind to India    and its emerging new economy.  The past few years howeverhave not been so nice.One problem have been the traditionally sclerotic planning and development authorities who have been sluggish in releasing land for development, along with the overall mistrust of the free flow of capital and labor, dependent on the classic mid-20th century model of  Fabian socialism.

Recently, the Indian government reasserted its heavy hand by overturning the previously independent Indian judiciary by putting a tax on international partnerships and acquisitions retroactively to 1962.

Land Value Tax on the Radio Friday March 30



Dr. Herbert Barry of Pittsburgh, an UrbanTools Director has shown his adeptness in outreach to all forms of media, including print and now radio.  Please call in to the radio show on Friday March 30, to participate in this broadcast.




I will be  interviewed on a radio show, on Friday 30 March 2012, 10:00 to 10:30 AM (Eastern time). Listeners can access it at the phone number 1-424-220-1873. The title I chose for the program is"How to remedy our maladaptive sources of government revenue.

Re-solving the Economic Puzzle w/ Walt Rybeck

Walt Rybeck, Director, Center for Public Dialogue, calls for correcting the public policies that make slum ownership, land speculation, and other forms of parasitic and exploitive behavior more profitable than honest labor and productive enterprise.
 
His latest book,Re-solving the Economic Puzzle, provides accounts of places in the United States and elsewhere that are applying the proposed reform are presented, proving that it is politically feasible, and offers an ethical cleansing of the economy so that all people can enjoy all the fruits of their efforts.

Saving your City: a Talk on Land Value Tax in Troy, NY


From the Collar City: You are Invited to a discussion on a new way to tax

Can your town use a new approach to in finance, planning and its relationships with citizens?



Property taxes are both the main source of revenue for local governments, and at the same time the most unpopular.  Economically, property taxes as they are currently structured, reward blight and disinvestment, while discouraging real estate markets from operating in more urbanized areas.  One tool used by dozens of cities in the US in hundreds of cities elsewhere is the land value tax is the land value tax.

Taiwan to reform property values, will help revenue and tax transparency.

Abandoning outdated land values will harmonize Taiwan's many species of land and property taxes...
Christine Liu, Taiwan's Finance Minister









(photo: CW)

The tax policies of Taiwan has always made it a successful outlier, one of the few Asian Tigers to prosper right after World War II, and doing well until the recent global slump.  A lynchpin of that policy is value-based land taxation.  Even though the agricultural land tax is moribund (since 1985), it has been argued that the goal of that tax, to free up large estates (in the manner Denmark's