To the worry about this reform being over sold, there is some real world evidence. The Australian Capital Territory (the state where Canberra is located) has been increasing land value tax and reducing stamp duty, the most economically harmful tax. They started in 2012, and will complete the transition in 2032.
The results have been positive. So there is evidence for this working in real life
My interest and concern with Georgism continues. The analogy to this cat was from a cartoon in a 1930 ish newspaper, where a leafless tree is shown and after studying it one can make out a cat within its branches. Once you have seen it, every later occasion you see the picture you immediately see the cat. This is how my fellow Georgists see their ideal, after you have it its fixed in your mind.
Now you might like this poem which is an alternative to basic Georgist policy but which does the same thing.
A MORE STEALTHY GEORGIST CAT
The Georgist cat is small and lean
And often doesn’t get to be seen.
It hides in the branches of an economic’s-tree
So it takes a long while for you or for me,
To appreciate its cute and original form
That the landlords are so ready to scorn.
The economic’s-tree has many fine branches
(On which we contend, there are no free-lunches).
Whilst the land-owning rich in the city all claim
As bloated capitalists, that they’re not to blame
For the gap that lays ‘twixt the poor and the wealthy,
But oppose any tax to make our nation healthy.
Have you heard the tale of a committee, that
Thought to bell and get warning of a fat cat?
But could not find a soul to apply this device,
Because typically all were a council of mice!
Our Georgist cat has a bell ready-fitted,
(Which makes this analogy more to be pitted).
This warning sound makes our ideals unwanted,
For a new tax is how politicians get doubted.
So the Georgist cat fails to catch any mice
That pose as landlords, along with their vice.
But how shall we silence the bell’s warning sound
And quieten the news that our pussy’s around?
Our Georgist feline is in serious error,
‘Cause its bell draws attention not only to whether
Valuable sites can be ethically shared,
But also the rent from a site is declared
As the means to replace other kinds of taxation,
Which obviously causes the landlords vexation.
In the economic’s tree many other beasts lurk
But are missed, after learning of Henry G’s quirk
Through the cat-finder’s recently brilliant discovery.
This writer seeks a new means for recovery
From our politi-unacceptable claim,
And stealthily project LVT once again.
If we would but examine some more of the tree
Alternatives are waiting there for us to see.
Among them is hiding a far better way
For an equivalent LVT effect, to stay
In essence, without causing such evil offences
To the landlords and their partitioning fences.
When a property-owner decides to sell--quick
The gov’ment buys its land, and not the public!
Its occupant then leases it for a similar fee
To the One-Tax of Henry George’s decree.
Any buildings on-site should be sold as previously
But without the land, on which the price grievously
Had risen, with huge speculation in its advance
That stopped entrepreneurs from having a chance.
The cost of this land must be raised through new bonds
Which the government sells and the public responds,
‘Though their interest-rate’s a bit lower than rent,
Their returns are more stable than the average tenant!
This process will take many years to complete--
So its financial support is no great money feat.
After the lease-fees begin to collect,
Gov’ments can tax less, and firmly expect
To pursue this policy without change, until
All the lease-fees are site-rents in the Gov’ment’s till.
With the land properly shared, the government sees
That site development stays with the current leasees.
Other taxes that cause so much trouble and hate
Are scrapped, with great pleasure to all in the state,
Except for some bankers and the tax collectors
Whose actions no longer apply in these sectors.
Land-rights will be shared through this simple device,
We're building something that doesn't need to wait for governments to bend over: https://rentless.co/
It'll be slower than an edict from the government, but by building this we can build the coalition that gets the edict passed.
Our aim is to replace private sector renting using housing co-operatives, and eventually make housing affordable everywhere forever -- even if governments never act. The way it works is by using a charity to buy land with secured & unsecured debt, then leasing it to a housing co-op that the residents control, in return for a ground rent large enough to cover the debt instalments.
The residents get much control and security than they would with a landlord -- they find the property, maintain and improve it, and have the flexibility of renters. We've discovered that tenants *really want* this control, even if it's extra work.
And because it's owned by the charity, we can charge rent at the mortgage instalments or 3% of the value of the land annually, and return the proceeds to the local community. We're planning to experiment with the most effective way to do this, but, basically, we want to prove the Henry George Theorem.
But we need some money to get the flywheel turning. The more we rely on traditional VCs, the less charitable we can be -- so we would rather rely on funds from mission-aligned sources.
We've got the legal documents, have tenants interested in renting with us, and have connections with co-op groups and banks to go to market. We just need enough to quit our jobs and hire a developer!
If you're reading this and don't have funds, but do know people who might be interested in either living with us, or working with us to make this happen, please put us in touch with them.
Yep! It's exactly that -- the problem we're solving isn't making it possible, it's making it easy to set up a community land trust that owns the property and the co-op that manages it.
Eventually we want to make it as easy to move into a CLT/Co-op home as it is to book an Airbnb. To do that, we need to get financing, and reduce the home-buying process from months to weeks.
We have more options with financing, because property is a safe investment. The more expensive the loans, the higher the yield rates we need. The larger we scale, the cheaper the loans.
Tenants need to be able to move quickly, and that isn't really possible yet. At the moment we're relying on people who know and love co-ops and are willing to put a lot of effort in. Eventually, we want to get to a point where you find a property you like, press a button in the app, and move in 3 weeks later.
This is indeed a step in the right direction. Instead of having many land trusts all of which are like companies that work independently, what we should be recommending is one big one, that is run by the government which buys up all the sites of land as they and their "real-estates" come onto the market. My poem above outlines this. We really need to consider this alternative to LVT which is not an effective method due to the amount of opposition it immediately causes. This proposal avoids that problem.
Our aim is to create something like that. We don't want to be owned by the government, but we do want to make living in a CLT / Co-op a much better option than renting -- and then build the scalability to give all renters that option.
We'd like to acquire land so that the ground rent can benefit the community. The rest is building a platform that can acquire lots of land very quickly. To make that possible, we're planning to enable the tenants to do the work themselves. We'll provide a platform for them to find property, manage the lawyers and surveyors, and then manage it when they move in.
Thanks for your reply and comment. As soon as one thinks in terms of private ownership of land the governing powers of the country will continue to allow these owners to benefit from the ground-rent, even if this benefit is then collected as if it is a tax within the co-operative units. Do you think that the government will grant tax relief if and when such collected ground-rents are passed to it to cover what taxes are cancelled? For my idea to work the ownership of the land must be by the government which does not control its use except indirectly through the lease fees that it receive in leu of taxation, and to some extent through the necessary development of new infrastructure. To "acquire lots of land very quickly" requires a great deal of money to pass from the co-operative units to the previous land owners. From where will this money come?
May I translate this text to brazilian portuguese and publish it on blogs and reddit?
You may!
Done! https://80000horas.com.br/o-marciano-e-o-economista-uma-parabola-das-panaceias/
To the worry about this reform being over sold, there is some real world evidence. The Australian Capital Territory (the state where Canberra is located) has been increasing land value tax and reducing stamp duty, the most economically harmful tax. They started in 2012, and will complete the transition in 2032.
The results have been positive. So there is evidence for this working in real life
https://www.prosper.org.au/campaigns/stamp-duty-to-land-tax/a-c-t-land-tax-transition/
Here is a better story:
My interest and concern with Georgism continues. The analogy to this cat was from a cartoon in a 1930 ish newspaper, where a leafless tree is shown and after studying it one can make out a cat within its branches. Once you have seen it, every later occasion you see the picture you immediately see the cat. This is how my fellow Georgists see their ideal, after you have it its fixed in your mind.
Now you might like this poem which is an alternative to basic Georgist policy but which does the same thing.
A MORE STEALTHY GEORGIST CAT
The Georgist cat is small and lean
And often doesn’t get to be seen.
It hides in the branches of an economic’s-tree
So it takes a long while for you or for me,
To appreciate its cute and original form
That the landlords are so ready to scorn.
The economic’s-tree has many fine branches
(On which we contend, there are no free-lunches).
Whilst the land-owning rich in the city all claim
As bloated capitalists, that they’re not to blame
For the gap that lays ‘twixt the poor and the wealthy,
But oppose any tax to make our nation healthy.
Have you heard the tale of a committee, that
Thought to bell and get warning of a fat cat?
But could not find a soul to apply this device,
Because typically all were a council of mice!
Our Georgist cat has a bell ready-fitted,
(Which makes this analogy more to be pitted).
This warning sound makes our ideals unwanted,
For a new tax is how politicians get doubted.
So the Georgist cat fails to catch any mice
That pose as landlords, along with their vice.
But how shall we silence the bell’s warning sound
And quieten the news that our pussy’s around?
Our Georgist feline is in serious error,
‘Cause its bell draws attention not only to whether
Valuable sites can be ethically shared,
But also the rent from a site is declared
As the means to replace other kinds of taxation,
Which obviously causes the landlords vexation.
In the economic’s tree many other beasts lurk
But are missed, after learning of Henry G’s quirk
Through the cat-finder’s recently brilliant discovery.
This writer seeks a new means for recovery
From our politi-unacceptable claim,
And stealthily project LVT once again.
If we would but examine some more of the tree
Alternatives are waiting there for us to see.
Among them is hiding a far better way
For an equivalent LVT effect, to stay
In essence, without causing such evil offences
To the landlords and their partitioning fences.
When a property-owner decides to sell--quick
The gov’ment buys its land, and not the public!
Its occupant then leases it for a similar fee
To the One-Tax of Henry George’s decree.
Any buildings on-site should be sold as previously
But without the land, on which the price grievously
Had risen, with huge speculation in its advance
That stopped entrepreneurs from having a chance.
The cost of this land must be raised through new bonds
Which the government sells and the public responds,
‘Though their interest-rate’s a bit lower than rent,
Their returns are more stable than the average tenant!
This process will take many years to complete--
So its financial support is no great money feat.
After the lease-fees begin to collect,
Gov’ments can tax less, and firmly expect
To pursue this policy without change, until
All the lease-fees are site-rents in the Gov’ment’s till.
With the land properly shared, the government sees
That site development stays with the current leasees.
Other taxes that cause so much trouble and hate
Are scrapped, with great pleasure to all in the state,
Except for some bankers and the tax collectors
Whose actions no longer apply in these sectors.
Land-rights will be shared through this simple device,
By a fast-growing country that takes our advice.
We're building something that doesn't need to wait for governments to bend over: https://rentless.co/
It'll be slower than an edict from the government, but by building this we can build the coalition that gets the edict passed.
Our aim is to replace private sector renting using housing co-operatives, and eventually make housing affordable everywhere forever -- even if governments never act. The way it works is by using a charity to buy land with secured & unsecured debt, then leasing it to a housing co-op that the residents control, in return for a ground rent large enough to cover the debt instalments.
The residents get much control and security than they would with a landlord -- they find the property, maintain and improve it, and have the flexibility of renters. We've discovered that tenants *really want* this control, even if it's extra work.
And because it's owned by the charity, we can charge rent at the mortgage instalments or 3% of the value of the land annually, and return the proceeds to the local community. We're planning to experiment with the most effective way to do this, but, basically, we want to prove the Henry George Theorem.
But we need some money to get the flywheel turning. The more we rely on traditional VCs, the less charitable we can be -- so we would rather rely on funds from mission-aligned sources.
We've got the legal documents, have tenants interested in renting with us, and have connections with co-op groups and banks to go to market. We just need enough to quit our jobs and hire a developer!
If you're reading this and don't have funds, but do know people who might be interested in either living with us, or working with us to make this happen, please put us in touch with them.
Sounds like a community land trust?
Yep! It's exactly that -- the problem we're solving isn't making it possible, it's making it easy to set up a community land trust that owns the property and the co-op that manages it.
Eventually we want to make it as easy to move into a CLT/Co-op home as it is to book an Airbnb. To do that, we need to get financing, and reduce the home-buying process from months to weeks.
We have more options with financing, because property is a safe investment. The more expensive the loans, the higher the yield rates we need. The larger we scale, the cheaper the loans.
Tenants need to be able to move quickly, and that isn't really possible yet. At the moment we're relying on people who know and love co-ops and are willing to put a lot of effort in. Eventually, we want to get to a point where you find a property you like, press a button in the app, and move in 3 weeks later.
This is indeed a step in the right direction. Instead of having many land trusts all of which are like companies that work independently, what we should be recommending is one big one, that is run by the government which buys up all the sites of land as they and their "real-estates" come onto the market. My poem above outlines this. We really need to consider this alternative to LVT which is not an effective method due to the amount of opposition it immediately causes. This proposal avoids that problem.
Our aim is to create something like that. We don't want to be owned by the government, but we do want to make living in a CLT / Co-op a much better option than renting -- and then build the scalability to give all renters that option.
We'd like to acquire land so that the ground rent can benefit the community. The rest is building a platform that can acquire lots of land very quickly. To make that possible, we're planning to enable the tenants to do the work themselves. We'll provide a platform for them to find property, manage the lawyers and surveyors, and then manage it when they move in.
Thanks for your reply and comment. As soon as one thinks in terms of private ownership of land the governing powers of the country will continue to allow these owners to benefit from the ground-rent, even if this benefit is then collected as if it is a tax within the co-operative units. Do you think that the government will grant tax relief if and when such collected ground-rents are passed to it to cover what taxes are cancelled? For my idea to work the ownership of the land must be by the government which does not control its use except indirectly through the lease fees that it receive in leu of taxation, and to some extent through the necessary development of new infrastructure. To "acquire lots of land very quickly" requires a great deal of money to pass from the co-operative units to the previous land owners. From where will this money come?
Website doesn't work.