Reviving an Old Idea to Solve Modern Housing Challenges – Land Value Tax

In this episode, we're diving into a timeless economic solution that's gaining new attention in today's housing debates: the Land Value Tax (LVT). Unlike traditional property taxes, which tax both land and the structures on it, a Land Value Tax focuses solely on the land. This means property owners aren't penalized for making improvements, like building more housing—a crucial distinction in the context of today's housing crisis. We'll explore the origins of this idea, tracing back to economists like Adam Smith and David Ricardo in the 1700s, and its popularization by Henry George in his influential 1879 book Progress and Poverty. Advocates of LVT, often called Georgists, have emerged from across the political spectrum, including notable figures like Milton Friedman and Joseph Stiglitz. Joining us is Floyd Marinesco from Common Wealth Canada, a think tank advocating for a Land Value Tax to address housing challenges in Canada. Floyd shares insights into how this idea could reshape housing markets and what lessons might apply to other regions facing similar issues. Have questions or feedback? Email me at [email protected]—we'd love to hear from you!