LVC collects the rise in local land values
Frank de Jong
Letter in Toronto Star March 18, 2014
The Ontario Liberal party decision to not use gas, income or sales taxes to finance Toronto transit is good news. These deadweight taxes should be avoided as they damage the economy by raising the cost of goods and services.
Happily, abandoning these sub-optimal funding tools leaves only the optimal tool: Land Value Capture.
LVC collects the rise in local land values that the new transit generates and uses this money to finance the infrastructure, which is how Hong Kong built and continues to expand its transit system.
People and businesses bid up the price of land around new transit, hospitals and schools because of the advantages of living and working near them. This rise in land values is revenue that economists call “economic rent”. It is wealth that was created by the government-funded infrastructure and should therefore go back to government to pay for the project and not be a windfall profit to those who happen to own nearby land.
Frank de Jong, President, Earthsharing Canada, Toronto
Bill Winegard
well said Frank! The Libs are surely going to have to discover LVC when all else has been disqualified
Bill Winegard
416-695-8992
wine...@rogers.com
--
You received this message because you are subscribed to the Google Groups "Earthsharing Canada" group.
To unsubscribe from this group and stop receiving emails from it, send an email to earthsharing-ca...@googlegroups.com.
To post to this group, send email to earthshar...@googlegroups.com.
Visit this group at http://groups.google.com/group/earthsharing-canada.
For more options, visit https://groups.google.com/d/optout.
Sue Honsl
Excellent! Very clearly and precisely stated. So glad this got published.
Sue
Date: Fri, 21 Mar 2014 09:25:23 -0400
Subject: LVC collects the rise in local land values
From: fde...@earthsharing.ca
To: earthshar...@googlegroups.com