George argued that taxing the land value is most logical source of public revenue because the supply of land is fixed and because public infrastructure improvements would be reflected in (and thus paid for by) increased land values. LVT is associated with Henry George, whose ideology became known as Georgism. Economists since Adam Smith and David Ricardo have advocated this tax because it does not hurt economic activity or discourage or subsidize development. The land value tax has been referred to as "the perfect tax" and the economic efficiency of a land value tax has been accepted since the eighteenth century. A land value tax is a progressive tax, in that the tax burden falls on land owners, because land ownership is correlated with wealth and income. Land value taxes are generally favored by economists as they do not cause economic inefficiency, and reduce inequality. ![]() It is also known as a location value tax, a site valuation tax, split rate tax, or a site-value rating. A land value tax ( LVT) is a levy on the value of land without regard to buildings, personal property and other improvements.
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