Why We Should Land Rent Tax Reform

Land Rent Tax Reform Nobody likes taxes; all taxes result in the loss of money from citizens. However, some form of taxation must be implemented into every nation with a government in order to maintain order. The goal of every government is to establish the best possible route of taxing while harming the least amount of people. The people make up the economy and it is crucial to implement the “least bad” tax in order to improve the overall well-being of a nation's citizens. As we have learned throughout the course, secure land titles allow average citizens to buy and invest in land in hopes to later charge for that land and make a profit. However, our current tax system takes taxes from the labor and other costs of that land and does not have a tax which is the root of all the other costs involved, the land. Landowners are the only ones
onto land rent tax. The land is the source of all income, it is something that all people need and it is fixed which means that it cannot be eliminated or created. Therefore land is the one thing that can be taxed where it will effect everyone equally because it applies to everyone. Also, this shift in taxes will have no excess burden on the entire economy and will actually benefit the entire economy because of no deadweight loss. This reform could help eliminate poverty and unemployment because it creates a system which is everyone can benefit from rather than just the wealthy landowners. Also by shifting tax onto land rent the government benefits more because it generates more money effectively and allows for more public services. The idea of land rent is extremely simple and addresses money right at the source rather than taxing the resulting profit of the land. We can create a better society through a land rent tax shift which would reduce taxes, increase the wealth of citizens and economy, evenly distribute taxes, decrease poverty, etc. just by eliminating what we are taxing