01 / 01

A Five-Year Review of Land Value Tax Evidence

Does Georgism Work?

Based on Astral Codex Ten Analysis

2024

02

What is Georgism?

The economic theory that could transform cities

The Georgist Principle

  • 01
    Single Tax on Land Replace all taxes with a tax on unimproved land value
  • 02
    Capture Economic Rent Community-created value should benefit the community
  • 03
    No Tax on Labor Workers keep what they earn; only land is taxed
  • 04
    Prevent Speculation Discourages holding land idle for profit
04

The Evidence

What the data shows after five years

Promised vs. Observed Outcomes

Theory Predicts Ideal
  • Eliminate housing bubbles
  • Reduce inequality
  • End land speculation
  • Fund public services
Reality Shows Evidence
  • Mixed results at scale
  • Implementation challenges
  • Some local successes
  • Political resistance

Land Value Tax Implementations

1901
Pennsylvania Split-Rate Tax

First major U.S. implementation in cities like Pittsburgh

1990s
Estonia Land Tax

Successfully funds local municipalities

2000s
Taiwan Land Policies

Limited LVT shows positive effects on development

2020s
Renewed Interest

Cities reconsider LVT amid housing crises

Key Findings: The Verdict

  • ✓
    Works in Theory Economic principles are sound and well-established
  • △
    Mixed in Practice Results depend heavily on implementation quality
  • ✗
    Political Barriers Landowners resist; transition costs are real
  • →
    Incremental Path Partial LVT adoption shows more promise than full replacement

The Bottom Line

Georgism works — but implementation matters more than theory

Source: astralcodexten.com/p/does-georgism-work-five-years-later
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