Georgism is the idea that we should abolish the income tax in favour of a land-value tax.
This crazy idea was thought about by Henry George(from here comes the name georgism).Goerge was an American political economist and journalist. A pretty cool pal in my opinion.
Beaucuse its literally theft. Taxing someone's income means taxing his labour, taxing his labour means taxing his time.
Money = time + labour
labour = time + effort
The state has no right to tax your labour, to tax your struggle. ITS THEFT!
The Philosophy behind georgism is that, the land of a nation is the nation's land, not the individual's, YOU an individual by owning land,YOU remove the right of the other to use said land. And for this you shall be taxed, to make up for your sin of limiting the other's liberty.
If you think about it, its not much of a tax...more like rent to the comunity, to the nation in order to use it's land.
Now, this might be the only tax you cannot avoid, I mean you cannot move your land to a fiscal paradise to not pay taxes on it. One can only imagine how efficient this mode of taxation would be, the rich cant avoid it.
The land-value tax would mean that a % will be taxed monthly out of the total value of the land, the value of the land being decided by the "invisible hand of the marker".
You could tehnically make it progressive but I think it is progressive by nature, meaning rular/suburban and small cities would be taxed less, almost insecnificant in comparision to how much they're taxed on income today, while bigger cities and more exclusivist areas would get taxed more, beacuse the value of the land would be higher ,meaning a 5% value tax would look different for various lands.
You a working man will be able to pay for all of this. The same for a business owner.
What I said so far are the direct consequences of such reform, but in economics we should look more at the indirect ones. How would such reform impact the market?
A first indirect
consequence would be creating an intiative to either sell or do something with their land. This would solve two problems. For starters there is a lot of land simply sitting unused, where it could be used to in agriculture, gone would be the days when on fields instead of growing wheat or corn there grows bushes.
This would also solve the real-estate problem , a lot of land simply sits unused beacuse people have bought a lot of land when it was cheaper to sell later when it would be more expensive, witheout creating any real value, a charactirstique of the capitalist schizophrenic machine.For example Russian oligarchs buy historical buildings and properties around Europe as an passive investment , like stocks, this leads to said buldings with historical significance to be in a state of decay, as the land they sit on plus the value of the building goes up in time as the comunities around the bulding grow making the value of the grow too.This also applies to empty houses, by putting a tax on the land the property sits on you eradicate this problem, because it's no longer profitable to do this.
Like, in 3 years of just holding a property to sell later for profit you would have already payed in taxes 2 times the value of the property if not even more, creating an incentive for you the individual who owns it to do something with it.
Another indirect consequence would be the lowering of rent , or even the abolishment of landlords , like those who own 40 properties and rent them for profit, living off the backs of the working man like parasites.
Because of the land value tax being tied to the value of the land, and the value of the land being tied to market prices, the landlord raising the rent would equal to him saying that the land the property sits on it's more valuable now, rasing his taxes in the procces , and if he lowers rent he also Lowers his taxes, this would lead to a competition between landlords to give the lowest price, literally how there is a competition between supermarkets to give the cheapest goods but on another scale.Or even the abolishment of landlord all togheter beacuse it is no longer profitable.
This reform wouldn't hit the family of 4 who inhereted two properties from aunts,uncles or Grandparents if they chose to rent them, rather than selling them so their two kids could have houses when they're grown ups. Instead of leaving the houses or apartments empty until that happens.
Well it is very simple. The same thing that would happen if you don't pay your rent, the landlord(in this case the state) would kick you out(take your property away). Basically you not paying your tax is declaring that the land you use is now public property, therefore in the hands of the nation trought the state.
In conclusion, Georgism is based, its not really a tax its a rent, you have to do your duty for the comunity and PAY YOUR FAIR SHARE!!!!! If you don't aggre with me, read the essay/article again or read more about georgism then make up your mind.
This was my first article or essay or whatever, I hope you enjoyed it and thank you for reading it! Cya.