Taxation for Low Cost Wood Fiber*

Abstract . If forest industry taxation is to be put on a sound economic basis, the Federal Government, the largest land owner, should pay the same taxes as any other landowner, so that the social and economic effects of taxation are realized. Specialists report that the form of the property tax preferred for the taxation of the property of the forest industry, under most circumstances, is land value taxation, not the property tax based on income realized at some point In the future which presumed the continued existence of virgin forests. This paper recognizes that the forest industry now is based on harvests of tree crops and proposes a further development of the land value taxation principle in the form of a forest tax composed of a land value tax combined with a tax on tree growth which increases as growth as a percentage of volume growth decreases with the tree's increasing age.     

The Economic Effects (Neutrality) of Taxes on Land

A bstract A recent review of the economic effects of land taxation by Steven Bourassa created the misleading impression that a tax on land will have pro-development or non-neutral effects where there are non pecuniary returns from land or where there are capital market imperfections preventing developers from obtaining all the land that they want for development This note argues that a tax on land value is generally neutral, and that this will be the case whether or not there are non pecuniary returns and capital market imperfections, provided that the existence and extent of the imperfections are independent of the tax     

Site Value Taxation on Australia

A bstract . Site value taxation is neither a new nor a strictly western concept. Taxing land based on location was proposed in India around 300 B.C. François Quesnay, David Ricardo and John Stuart Mill were among the economists favoring land taxes but Henry George is credited with bringing it about in several areas, notably Australia. That subcontinent has experimented with the land tax on the national as well as the state and local levels but it is presently used only on the latter two. Empirical tests of the tax instrument are few. Pollock and Shoup (1977) forecast that eliminating the tax on improvements would increase investment levels by about 25 per cent in the long run. Hutchinson (1963) found great differences in house values and stocks. This study evaluates the effects of site value taxation on the basis of multivariate regression analysis. It finds strong evidence that, where improvements are relieved of taxation and more revenues are obtained from land values, the average value of housing is significantly higher and the value of the housing stock substantially larger.     

TAXING LAND VALUE IS JUST ANOTHER QUESTIONABLE TAX

There has recently been much public debate about the introduction of a land value tax. To its supporters such a tax promises to achieve several goals simultaneously. On closer inspection, however, the arguments in favour of land value taxation are not convincing. On the contrary, the economic foundations on which proponents of this tax rely are dubious, and there are significant legal, moral and practical problems with land value taxation.     

因子分析法应用于人力资源配置的分析研究

随着房地产业的发展以及税收改革的深化,地税系统管理任务繁重,人力资源配给矛盾突出,人力资源如何合理分配日趋严峻。本文以M市地税系统为例,利用因子分析法通过对该市地税系统人力资源分配的各个因素如工作强度、工作难度和工作环境进行分析,并提出了对应方案。     

Site Value Taxation in a Declining City

A bstract . The relationship is analyzed between the economic decline of a central city and the likelihood that a site value tax will be politically acceptable. Public choice and land use models are combined to generate a scenario of land use changes and changes in improvements to land ratios which determine whether a specific property owner will gain or lose from a revenue-neutral site value tax. A case study is presented which substantiates many of the effects suggested by the model. In general, private and public sector responses to a city's decline result in an atmosphere that is relatively hostile to site value taxation.     

Neighborhood Revitalization and New Life: A Land Value Taxation Approach

When a neighborhood declines, the poor get poorer, crime rises, and those who can leave the area. The tax base shrinks, so the rates paid by those least able to pay increase. The prevailing system of a low tax on land values leads to land speculation and private land banking, assuring that the landowner can hold out for a very high price for a very long time. A higher tax on land values (coupled with reduction in building taxes) creates an incentive to sell that land or do something with it rather than waiting. In cities that use land‐value taxes, real‐estate markets start to work again and neighborhoods recover. Clairton, Pennsylvania's adoption of a land‐value‐taxation system demonstrates the neighborhood revitalization to which it leads, as owner‐occupied residences and multi‐family units saw a relief in their tax burden. In contrast, vacant properties' contribution to the city budget tripled, providing the resources to pay for the education of Clairton's children and liberate working and middle‐class families from the bonds of labor and capital taxation.     

Henry George and Europe

A bstract . The basic ideas of Henry George , 19th century American economist and social philosopher, were not novel in Denmark , which had a tradition of land value taxation and free trade. But they had special appeal for its smallholder farmers. They demanded that George's principles be applied more fully, getting all tax revenues from the land 's unimproved value, so that taxes on buildings, personal property and wages could be abolished. Viggo Ullman 's Danish-Norwegian translation of Progress and Poverty won the commitment of folk school movement leaders and the intelligentsia. In 1903 large landowners gained control of the Liberal Party and proceeded to abolish the traditional land tax, producer of up to 50 percent of State revenues. The Radical Liberals split and took over, to some extent carrying out George's taxation principles. In 1919 a Georgist party, the "Retsforbundet" was founded; it won the balance of power in 1957. But lack of finances and organizing ability and growing voter apathy ended its progress.     

中部崛起与税收关系研究

中部崛起是我国现阶段经济发展的重点,为了实现其目标,必须对中部实行税收优惠政策。但是现行的税收政策对中部崛起具有诸多不利影响,表现在生产型增值税、所得税及资源税等。本文认为,为了全国经济的平衡发展,应对中部应实行消费型增值税,完善中部的资源税,对所得税实行优惠。     

Three-rate property taxation and housing construction

This paper examines the effect of property taxation on housing construction. In 2001, Finnish municipalities were allowed to levy an extra property tax on undeveloped land zoned for housing. Municipalities that adopted the new tax instrument have a three-rate tax property tax system with different tax rates on land before development, land after development and buildings. The remaining municipalities have a two-rate system with a uniform land tax and a building tax. A theoretical model of decisions by landowners suggests that the pre-development land tax ought to lead to faster development, but also the density of development may be affected. In the two-rate system land tax is neutral. The empirical results suggest that landowners respond to the tax incentives. Municipalities that adopted the three-rate property tax system saw an increase in single-family housing starts of roughly 12 percent.     

TAXATION OF ECONOMIC RENTS

Economic rents have long been identified as an efficient tax base. In addition, the recent literature documents that rent income is highly concentrated and that rents are quickly increasing. Rent taxation thus seems attractive for reasons of both efficiency and equity. Nevertheless, rent taxation remains a marginal topic in research and policy making. In a systematic review of the neoclassical literature on different rent types, we find that some types of rents reflect inefficiencies and should thus be minimized, while others reward investments and should be supported in line with social welfare. What remains for taxation are land rents, one of the few true scarcity rents. Land rents have significant potential to improve the efficiency of the tax system. We then begin to develop a comprehensive theory of land rent taxation by identifying relevant efficiency and equity effects. The interaction of many of these effects remains unexplored, which might explain policymakers' hesitation in using land taxes to date.     

Coordinating Opposite Approaches to Managing Urban Growth and Curbing Sprawl: A Synthesis

The purchase of development rights to farmland and open space has recently gained in popularity as a growth management tool. A purchase of development rights program pays the landowner for the unearned increment in exchange for strong deed restrictions, limiting the use of the property. On the other hand, land value taxation, a modification of Henry George's Single Tax, would tax land more heavily than improvements, thus encouraging the development of land. While land value taxation and the purchase of development rights appear to be opposing fiscal policies, they could be employed together as part of a regional planning strategy to encourage in-fill development within and near cities and to curb sprawl by retaining farm, forest, and ranch lands.     

Sooner or Later? – Paradoxical Investment Effects of Capital Gains Taxation under Simultaneous Investment and Abandonment Flexibility

This paper analyzes the impact of capital gains taxation on investment timing decisions for risky investment projects with entry and exit flexibility under differential tax rates for ordinary income and capital gains. We investigate whether capital gains taxation influences immediate and delayed investments asymmetrically, given the optimal abandonment decision. If capital gains taxation induces a lock-in effect, this effect is anticipated in the investment timing decision. In contrast to prior research, our numerical simulations show that this lock-in effect of capital gains taxation can induce normal as well as paradoxical effects on investment timing under simultaneous entry and exit flexibility. A paradoxical timing effect, i.e., investment accelerated by capital gains taxation, especially emerges for high liquidation proceeds or, more conservative tax accounting, low interest rates, and low volatilities. In these cases, capital gains taxation reduces the value of the option to invest and hereby increases the propensity to invest immediately. As a second paradoxical tax effect, capital gains taxation may favor delayed real investment over financial investment. Facing these results, tax legislators should not use capital gains taxation as a short-term tax policy instrument to influence investors' timing decisions.     

Harry Gunnison Brown's Advocacy

A bstract . Harry Gunnison Brown's fifty plus years of active advocacy of land value taxation are reviewed in the light of two recent articles. One indicates a waning interest and even understanding of Brown's chosen cause while the other demonstrates quite the opposite: the persistence and relevance of land value taxation. Brown's strategies are examined, drawing on his correspondence as well as his publications. It is suggested that evaluation of Brown's success or failure is a moot question in the sense that there was no one with whom to compare him.     

Political Economy of Property Tax Reform: Hawaii's Experiment with Split‐Rate Property Taxation

Economic theory suggests that switching from a general property tax to a split‐rate tax increases land use efficiency and stimulates urban core development while preserving the environment and reducing urban sprawl. Under split‐rate property taxation, land is typically taxed at a significantly higher rate than improvements. Beginning in 1965 Hawaii experimented with a statewide split‐rate property tax system to encourage economic growth and effect land reform. The experiment was ended in 1977. Following the transfer of property taxing powers to the counties in 1978, some counties brought back the split‐rate property tax at times. Since 2006, Kauai County has adopted the unusual practice of taxing improvements at a higher rate than land for most property classes. This article chronicles and explains the rationale behind Hawaii's state and county experiments with split‐rate property taxation.     

Cash flow analysis for energy impacted local governments—a case study of mercer county,north dakota

Energy resource taxation policy has become a major issue in a number of energy producing areas and particularly in the western united States. This paper compares alternative energy taxation systems in terms of their implications for local governments and local planning. A fiscal impact simulation model is utilized to evaluate a severance-production tax system and, alternatively, an ad valorem property tax system. The results indicate that the form of taxation system adopted can have a major influence on the fiscal outlook for local governments in areas affected by large scale development projects and thus on the welfare of area residents. These results also suggest that local fiscal considerations should receive careful attention in local planning and policy formulation.     

Tax aggressiveness and idiosyncratic volatility

This study finds that aggressive tax strategies adopted by a firm affect idiosyncratic stock return volatility. Aggressive tax strategies, which I measure as tax paid by a firm divided by pretax income (adjusted for special items), are associated with higher levels of idiosyncratic stock volatility. Uncertainty associated with tax strategies may result due to several factors, such as penalties, fines, and additional tax payments if particular tax strategies are disallowed by taxation authorities, or if there are changes in tax rules. Such uncertainty affects the future cash flows of a firm and is reflected in more volatile stock returns. Financial constraints, corporate governance mechanisms, and information environments surrounding a firm influence the relation between idiosyncratic volatility and effective tax rates.     

OPTIMAL PROPERTY TAXATION IN CALIFORNIA: Is Greater Reliance on Land Values Feasible and Desirable?

Legal changes to Proposition 13 and fiscal imbalance provide, for the first time since 1978, the environment for serious consideration of restructuring property taxation in California. The background of the current situation is reviewed, and as a first approach to determining the optimal property tax system, Henry George's a priori case for taxing land is noted. Studies in the new public finance, especially optimal taxation theory and applications - for example, general equilibrium modeling in policy analysis - provide encouraging though limited support for greater reliance on site value taxation.     

Land Value Taxation and Housing Development

A bstract . The effects of land value taxation on housing development are studied in three disparate cities: Pittsburgh, McKeesport, and New Castle, Pennsylvania. These places are examples of three different types of city: central city, suburban city , and relatively isolated city , respectively. Shifting taxes from buildings to land is hypothesized to have different effects in the different types of cities. A liquidity effect , due to increases in the land tax rate , is expected to operate in all three types of cities. An incentive effect , due to decreases in the tax rate on improvements , is expected to function in central cities and, possibly, in relatively isolated cities. It is not expected to be important in suburban cities such as McKeesport. An incentive effect was found in Pittsburgh, but not in the other two cities. No evidence of a liquidity effect was found in any of the three cities. An explanation of why observed effects may not conform with hypotheses is given.     

The Constitutionality of a Federal Net Wealth Tax

A bstract . Consideration of a Federal Net Wealth Tax would help settle the question of the scope and limits of the taxing powers of the United States Government. The confusion attending this, which has prevented the federal government from taxing land and kept state taxation of land too low to bean efficient allocator of this resource , can be clarified. The Constitution's Article I, Section VIII, gave the federal government power to levy taxes, duties, imports and excises, as "indirect" taxes, requiring only that the duties, imposts and excises be "uniform throughout the United States." The 16th Amendment authorized a "direct" tax on "incomes, from whatever source derived." The intent of the Founding Fathers—almost all large landholders—was to prevent the new federal government from using land as a tax base. But the distinction between the types of taxes lacks economic meaning. By making the base of a new tax the net wealth of taxpayers. Congress could obtain a Supreme Court test to end the confusion. If the Court, following precedent, required that land be excluded from the tax base, this would assure land as a tax base to the states and permit them to tax it in a way to end speculative withholding of tracts and sites and to bring about orderly development according to current need.