Decius

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Predicted Land Value Tax: a better tax than an unimproved land value tax

"Undevelopable" does not mean "utterly without use". An area that can't be paved over and built up because it would cause watershed damage might still be usable for grazing cattle. A city block surrounded by blocks that have variances from the building height code is worth less, not worthless.

Predicted Land Value Tax: a better tax than an unimproved land value tax

Suffice it to say that there are epicycles that negate the specific problems that you were pointing at. They almost certainly invoke problems that I'm not capable of identifying.

Predicted Land Value Tax: a better tax than an unimproved land value tax

Bidding on tax bonds would set equally efficient prices on them, since it would be the insurance companies' people bidding on them.

Predicted Land Value Tax: a better tax than an unimproved land value tax

Treasury bonds pay back their principal; deducted improvements would not be added to basis price at the time of sale.

Predicted Land Value Tax: a better tax than an unimproved land value tax

That's entirely incompatible with the idea of selling the tax liability separately.

Predicted Land Value Tax: a better tax than an unimproved land value tax

If the insurers go insolvent, does the government default?

I would suggest a system where the government sells bonds linked to specific future tax revenues, and allow a property owner to buy the bond for their own property many years in advance, essentially prepaying the taxes at the current bond rate. If property values and taxes, or even just collections, crash, the bond holders take the loss.

Predicted Land Value Tax: a better tax than an unimproved land value tax

Should undevelopable land adjacent to a formerly rural developed area pay taxes as though it were developed, while giving the developed adjacent land two tax breaks?

Predicted Land Value Tax: a better tax than an unimproved land value tax
  • If someone has a lot of wealth stored in land that has been significantly improved, they could bear a larger tax burden than they would be paying under an unimproved land value tax.

I'm not sure why this is considered a weakness, other than the effect is has on incentives; it is easier to offset that effect on incentives than it is to eliminate it.


For example, tax land at its improved value, and allow the cost of any improvements to be deducted against up to half the tax on the land for the entity that made the improvement.

Improved value can be easily determined by market means; either enforce that the owner can always sell at appraised value, or enforce that any buyer can buy at appraised value. I prefer the option where the current owner determines if they will sell, but I can see an argument for letting the current owner determine the value on which they will be taxed, instead.

Settle Investment Trades Only Daily an improvement? True or False

Yes, other orders which are conditional on the price can also result in the market clearing price being undefined.

How do you determine what price to trade at? Is it the market clearing price with lowest/highest volume?

I don't see how you've explained how batching transactions is positive-sum; would it reduce transaction costs? Would it somehow provide net benefit to both buyers and sellers as compared to executing trades as they can be, rather than randomly benefiting some buyers at identical cost to the sellers?


Would the magic surplus be greater if trades were only executed quarterly, or if they were executed hourly- why daily, and not more or less frequently? It's certainly a solid Schelling point, but the math doesn't care about when NYC wakes and sleeps.

Settle Investment Trades Only Daily an improvement? True or False

If the end-of-day price is above my bid or below my ask, the stock couldn't trade, and the transaction never happens. For that reason there is a moderate incentive not to trade FCOJ futures right before the crop report is revealed, because your offers will have to stand but other parties can wait until after the news is out in order to meet them, and the future actors have an insurmountable information advantage.

It also results in some stop-loss order situations being metaconsistent; the trade price is below the stop-loss trigger point IFF the stop-losses trigger, resulting in multiple market clearing prices.

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