We Need a Land Value Tax, Not a Property Tax Cap
By Scott Baker (Common Ground NYC)
Land, unlike manmade capital, is finite, generally increases in value wherever location and population pressures are applied, and is the single leading cause of booms and busts in the financial cycle (there really is no such thing as a “business cycle”). Whereas capital, like buildings, can always be increased or decreased to suit market demand, land cannot. Therefore, the value of land belongs to the community that created it, to be collected via taxation, while the value of the buildings upon it are production, and belong to those who produce them.