Originally Posted by
MattButler
I think this is apples and oranges. Taxing the factory might make it disappear...move to China maybe. Hasn't this happened, a lot actually? More important, an LVT does in fact efficiently order and regulate factories. Consider this example. There is assessed a 20% LVT on all land. Land rich in coal or minerals has a higher value than desert land. This is because coal and mineral rich land contains the resources by which man builds factories. So right off the bat we know that the rights to some land is more expensive than for others, because of the underlying demand for the resources, and this is reflected in market prices of the land. Secondly, some factories are more valuable than others. This value of various planned factories then drives entrepreneurs planning them to compete with each other for the rights to the resources to build their factories. Once these hypothetical factories are built and running, it is competition in the marketplace for the operating factors of production, again resources like ore and minerals, etc., that will in part determine ongoing profitability, and that cost is driven by the overall market demand for those resources, which, needless to say, is ultimately imputed to land values. So it turns out not only does LVT efficiently allocate resources to which factories get built, it also allocates resources efficiently to those which wish to remain in operation. A capital tax thus is needless and becomes a double tax in fact.
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