Henry George Foundation of America
At the Henry George Foundation we believe there is a better way to finance our governments, combat sprawl without breaking the public bank, and provide incentives that will encourage sustainable practices without establishing new layers of intrusive and uncaring bureaucracy.
Land Value Tax - Universal Abatement (LVT)
A land value tax replaces the current property tax by collecting increasingly higher percentages of revenue from land instead of buildings - vacant lot/abandon building owners will see a rise in their property tax bill that will either result in them putting that land to its highest and best use or selling to someone who will.
Land values are publicly created, permanently available , and will not hurt the poor or hinder economic recovery, so taxing them is both efficient and equitable.
Implementation of a Land Value Tax/Universal Abatement would extend some of the tax relief enjoyed by 10 year abatement properties to all productive property owners and shift most of the added burden to the underutilized and vacant land across the city that has been benefiting from low taxes for decades.
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Current Philadelphia Council District Analysis
A tax on land, if properly enforced, cannot be avoided and thus is one of the most reliable sources for revenue. Special case hardships could apply for short-term deferrals or long-term liens, either of which would freeze increases for qualified applicants.
"Removing almost all business taxes, including property taxes on improvements, excepting only taxes reflecting the marginal social cost of public services rendered to specific activities, and replacing them with taxes on site values, would substantially improve the economic efficiency of the jurisdiction." William Vickrey, professor of economics and Nobel Laureate
Henry George School of Social Science Free Courses SPRING 2010
