It’s wild that you don’t see how exploitable such a tax would be. Specifically, it would make gentrification occur more easily and quickly.
If a developer became interested in rebuilding a poor neighborhood, their interest alone would dramatically raise the land value of the area. The now untenable tax burden would force the current residents to move out, and because the developer would be the only one interested in buying, the developer has nearly complete control over the sale price.
LVT is already a thing in a bunch of places... How come we haven't seen these dramatic gentrifications happen?
Land. Value. Tax.
Value.
Tax.
It’s wild that you don’t see how exploitable such a tax would be. Specifically, it would make gentrification occur more easily and quickly.
If a developer became interested in rebuilding a poor neighborhood, their interest alone would dramatically raise the land value of the area. The now untenable tax burden would force the current residents to move out, and because the developer would be the only one interested in buying, the developer has nearly complete control over the sale price.
LVT is already a thing in a bunch of places... How come we haven't seen these dramatic gentrifications happen?