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jmbar2

(6,232 posts)
Mon Nov 13, 2023, 09:30 AM Nov 2023

NYT article on "Georgism". Could taxing land instead of buildings ease housing affordability?

NYT: The 'Georgists' Are Out There, and They Want to Tax Your Land

I haven't read much about Georgism, but this article is intriguing.

In the years after the Great Recession, tens of thousands of Detroit properties were bought by absentee landlords and faceless LLCs. The owners are so negligent and hard to find that the city mows their lawns without asking.


“Blight is rewarded, building is punished,” he said in a recent speech, repeating it over and over for emphasis.

The refrain is a windup for Mr. Duggan’s scheme to fix the blight: a new tax plan that would raise rates on land and lower them on occupied structures. Slap the empty parcels with higher taxes, the argument goes, and their owners will be forced to develop them into something useful. In the meantime, homeowners who actually live in the city will be rewarded with lower bills.

“The phrase we use is ‘Land should eat,’” Mr. Duggan, 65, said in a recent interview at his office.


Georgism gets its name from Henry George, who in the 1890s turned a book, “Progress and Poverty,” into a populist movement. George’s argument was that since land derives most of its worth from its location and the surrounding community, that community, and not the owner, should realize most of the benefits when values rise. His fix might sound wonky — tax the value of land but not improvements atop it — but it made him a celebrity in the 1890s.


https://www.nytimes.com/2023/11/12/business/georgism-land-tax-housing.html
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NYT article on "Georgism". Could taxing land instead of buildings ease housing affordability? (Original Post) jmbar2 Nov 2023 OP
Tax only the land, not the homes? The 1%ers would be very happy with that. Attilatheblond Nov 2023 #1
I dont understand how this would make it affordable thatdemguy Nov 2023 #2
I was so interested in this years ago that I visited a "Georgist" town in Delaware viva la Nov 2023 #3
Yet another overly simplistic solution to a comradebillyboy Nov 2023 #4
Land services and people services should be taxed separately rolypolychloe Nov 2023 #5

Attilatheblond

(4,558 posts)
1. Tax only the land, not the homes? The 1%ers would be very happy with that.
Mon Nov 13, 2023, 09:46 AM
Nov 2023

Especially those with very pricey condos and apartments in large, luxurious urban high rises.

The land doesn't use much in public services. Put a house and the needed infrastructure on it, throw in the maintinance on that infrastructure, like roads, water, sewer, trash collection, fire protection, law enforcement protection, civil regulations to keep them safe and protect their individual values, like zoning and such. ALL that is what really costs local government and need to be supported by a solid, reliable tax base.

The land doesn't require a lot of expenditure, until you put the home on it.

thatdemguy

(536 posts)
2. I dont understand how this would make it affordable
Mon Nov 13, 2023, 10:04 AM
Nov 2023

You tax the land, say its $1000 bucks a year, someone builds a million buck house, the tax is 1000 a year.

So ok you need to get more, you tax the land at 10k a year, how is that cheap for some one looking for an affordable small house.

Best option is kind of how it works now, tax the land and tax improvements. cheap small house, small tax bill, big house big tax bill.

But I am actually against property taxes on housing that is unchecked. The prop 9 in cali makes sense as it allows people who have lived in their house still be able to afford their house. Taxing some little old lady or man 10k a year on a house they bought in 1965 for 15 grand is a great way to ruin and make retired folks loose their house.

viva la

(3,860 posts)
3. I was so interested in this years ago that I visited a "Georgist" town in Delaware
Mon Nov 13, 2023, 10:06 AM
Nov 2023

It was pretty boring. I mean, it was like any other slightly shabby northeast town. It was billed as having a strong artisan/artist community drawn by the lower housing costs, but they'd actually mostly drifted away to the cities years earlier.

Negligent absent landowners would have to be taxed A LOT to get them to maintain and develop property. Obviously they don't mind making nothing on the property for years anyway.
Better would be confiscating neglected land after just a year or two of neglect... Give it to someone who will use it. (For owners who do care, but can't afford to do the repairs, well, it would be cheaper to help them out probably.)

I don't live in Detroit or Delaware, but in a city neighborhood-- a nice working class neighborhood, mostly "Levittown" style small frame homes. There's one house down the street that was partly burned by arson 11years ago, and has been boarded up and abandoned by the absentee owner. But the city just slaps more penalties on year after year, never condemning it, though the lot could be sold to a family for building.

So I see the problem, but I think that mere taxing land wouldn't solve the "too rich to care" owner problem. (Or the "too poor to fix" one either.)







comradebillyboy

(10,535 posts)
4. Yet another overly simplistic solution to a
Mon Nov 13, 2023, 10:11 AM
Nov 2023

very complex problem. We all want easy answers but those simple solutions rarely work.

rolypolychloe

(56 posts)
5. Land services and people services should be taxed separately
Mon Nov 13, 2023, 11:29 AM
Nov 2023

Things that cost more, the more people, should be funded by an income tax. So schools, police, courts, sewer, water, waste management, health and emergency services, libraries, local government, road maintenance, animal control? Everything that costs the same regardless of the population such as road construction, fire depts, fire prevention, security patrols, etc. should be funded by property tax. In short, property tax is for services to property. Income tax is for services to people.

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