The proponents of this I have met are generally wanting to use it force seniors with paid off homes out of them so they can live in them instead (or often build on them, as they are property developers).
It also assumes that NIMBYism remains at the same level, which is challenging, as every new build or development nearby increases your own taxes. It would also encourage the childless to fight things like schools, as they would pay extra tax having them nearby.
I don't think it's been shown to actually increase displacement and instability, in municipalities with a land value tax. It's theoretically the case, because now everyone is renting from either a landlord or the city/government, and if rents rise you might not be able to afford them.
In practice, land value taxes increase home ownership, so the actual displacement rate of a population might be the same or even less with LVT implemented.
> It would also encourage the childless to fight things like schools, as they would pay extra tax having them nearby.
Note that any existing property tax or council rates regime already theoretically has this effect too, but I don't really see this behaviour. It's a theoretical strategy that certain demographics could utilise, but not one that plays out in practice in any city I've ever seen.
> It also assumes that NIMBYism remains at the same level, which is challenging, as every new build or development nearby increases your own taxes. It would also encourage the childless to fight things like schools, as they would pay extra tax having them nearby.
This is the same as the existing tax system, where tax is proportional to (land value + buildings' value).
> High levels of displacement and instability.
Taxes would rise on undeveloped or underdeveloped properties, and fall on developed properties. The net effect would be an increase in total housing stock, as the relative cost of building and owning more units goes down.
> The proponents of this I have met are generally wanting to use it force seniors with paid off homes out of them so they can live in them instead (or often build on them, as they are property developers).
An LVT wouldn't have to work this way. The transition could be something like, set the LVT for each property the same as its current tax under the old system. But any future change in the value of buildings on the property don't affect its tax. This would mean seniors could continue paying the same tax they used to, while developers wouldn't get penalized for building more housing.
The Current system has property tax as one revenue stream of many. Income tax brings in by far the most funds, and there are sales taxes ect.
If you retire, or loose income, people currently pay less income taxes. You can also live frugally to cut down on sales taxes.
With LVT, taxes are detached from income and spending. Your taxes are also based on the whims of others. If your neighborhood gets trendy, you tax bill might double.
Do you have examples of LVT causing displacement & instability that's greater than what you get with astronomical housing costs in our normal property tax regime?
An LVT is good, but conventional property taxes are still much better than most other forms of taxation. Conventional property taxes don't cause astronomical housing costs.
California for example is partially so dysfunctional because they don't have enough conventional property taxes.
Yes, conventional property taxes disincentise building, but not more than capital gains taxes or income taxes do. And in large parts of eg California houses only cost a small fraction of the land they sit on at the moment.
The proponents of this I have met are generally wanting to use it force seniors with paid off homes out of them so they can live in them instead (or often build on them, as they are property developers).
It also assumes that NIMBYism remains at the same level, which is challenging, as every new build or development nearby increases your own taxes. It would also encourage the childless to fight things like schools, as they would pay extra tax having them nearby.