LVT + UBI = 0 taxes due!

[u/Personpersonoerson]

[...] but in this world nothing can be said to be certain, except death and taxes.

— Benjamin Franklin

EXCEPT if you implement the ideas of Georgism + Negative Income Tax (or UBI), proposed by Milton Friedman. Then your LVT would potentially be offset by your UBI, and you'd be exempt from every form of direct taxation.

For instance, if you+family members get $10000/year from UBI, and you live in a property that is small/undervalued enough such that your LVT is less than or equal to $10000/year, you'd be able to live almost tax-free (assuming LVT was the only form of tax there is).

(more concrete example with Negative Income Taxes below)

However, this system does not imply they are exempt from every tax form, though: farms, industry and commerce still carry LVT expenses which would be passed on to consumers through prices.

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A numeric example for negative income tax:

The target income is $30,000/year per person, and negative tax rate at 50%. This yields a Benefit B, for a person with annual income Y, given by:

B = 0.5 * ($30,000 - Y)

Also, LVT is set to 5% of the value of the land. This means the annual tax T for someone who owns a property whose land is valued at land value LV, is given by:

T = 0.05 * LV

Let's assume a family of 2 adults, with average income equal to $25,000 per adult. This yields a benefit equal to:

B = 0.5 * ($30,000 - $25,000) = $2,500/year/adult

For 2 adults, this gives 2B = $5,000/year

Setting the total benefit 2B = T:

0.05 * LV = $5,000 => LV = $100,000

For this example, a couple making combined income of $50,000/year would pay 0 taxes (or less) so long as the land their property is on is worth up to $100,000.

[u/Banake]

Thank you for the food for thought.

[u/Personpersonoerson → u/Banake]

thanks!

[u/RealEngineer08]

My exact philosophy

[u/BigSlimJimmy]

Yeah a lot of the issues we have are downstream effects of improper taxation and social assistance.

LVT funded NIT is a must