Tuesday, 1 December 2009

Property taxes encourage freedom

Property taxes, such as the Land Value Tax encourage freedom because they reduce inequality. The disparity between rich and poor is (perhaps) the primary, and justified, motivation behind high taxes. When inequality is reduced by placing a limit on property-ownership, with a property tax, there is less argument for high taxes, such as income tax, which means greater freedom.

Taxes such as the Income Tax are justified (to a greater extent than they otherwise would be) when inequality is so stark. Property taxes would reduce inequality and reduce the demand for high income (earnings) taxes, which would then be less popular.

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