There is Only One Proper Way to Pay Down Deficits

Steven Cord

[ GroundSwell, January 2012]

Raising taxes on things produced won’t pay down either the federal Deficit or the state and local Deficits –- they burden the economy and feed the Deficits; doing that is like pouring gasoline on a raging fire to put it out. Instead, tax land assessments rather than what is produced. Consider:

1) If land assessments are taxed more, then land-sites will have to be used more productively in order to pay the tax. It will also enable the paying down of the Deficit.

2) If production is taxed less (because land is taxed more), the economy will be promoted.

3) Most voters will pay less if what they produce is taxed less and their land is taxed more. Land rent is only a small part of their total income, probably for you also.

But a land tax absolutely must be introduced gradually. Landowners are entitled to sufficient time to adjust to a new tax arrangement (just not forever).

Here’s how to accomplish these 3 goals: levy a 15% tax on land values in the first year and allow 15% of that tax to be applied by the landowner as a credit for reducing his/her taxes on buildings. This is the 15%-15% Plan. Expand in the years following. Give landowners sufficient time to adjust to a new type of tax (just not forever).

State and local deficits can easily be paid down this way, but so can the federal Deficit. Reply (at no cost or obligation) to find out how to do all this.

In short, gradually tax land assessments more, what the voters produce less.

Individual property-tax increases can be limited to 3% per annum.