Georgism is an economic and philosophical theory named after the American political economist Henry George (1839 - 1897). It is also called Geoism because it is an ideology based on the distribution of land profits. While based on the concept of private ownership, it is characterized in that it regards land as the common property of all mankind, even though it is a natural object. It is famous for its imposition of a single tax on land values, and proponents of this theory argue that a land value tax is superior in achieving efficiency and fairness in the economy and, when introduced, would generate enough tax revenue to reduce (or eliminate) other taxes that lack efficiency and fairness. https://ja.wikipedia.org/wiki/ジョージ主義
Georgism is an economic theory proposed by 19th century American economist Henry George. The theory views land as a common resource and proposes an equitable distribution of property in society through taxation of landowners. Below is an explanation of the theory.
- Georgism is the belief that land is a natural resource and that all people should enjoy its benefits equally. Georgists argue that the value of the land (or “land rent”) should be subject to taxation, and they support the equal distribution of its revenues to all people. This form of taxation is also called a “land rent tax” or “single tax” (Single Tax).
- The main goal of Georgism is to reduce social inequality through equitable distribution of land ownership and revenues. In addition, the adoption of a land rent tax would eliminate or reduce many other tax systems (income tax, sales tax, etc.), thereby ensuring tax revenues without impeding economic activity.
- These ideas were put forward by Henry George as a fundamental solution to poverty and inequality and as a means of efficiently promoting economic activity. Georgism has a wide range of applications in socioeconomic policy and urban planning, and has also attracted attention from the perspective of environmental conservation.
What is the relationship with Japan’s property tax?
One of the central tenets of Georgism is the “land rent tax,” which is a tax based on the value of the land. This is similar, in part, to the Japanese property tax. Property taxes are levied on fixed assets, such as land and buildings, and are calculated based on the assessed value of the asset. However, there are important differences between these two taxes.
- The Georgist land rent tax advocates taxation based solely on the “undeveloped” value of the land, i.e., the value of the land itself, without consideration of buildings or improvements.
- Oh, I see.
- It aims to make land ownership more efficient, encourage the proper use of land, and ensure that the benefits derived from land ownership are shared by society as a whole.
- The Japanese property tax, on the other hand, taxes not only land, but also buildings and other structures. This differs from the Georgist land tax, which results in a potential increase in the tax burden as land is developed and improved.
- Thus, there are important differences between the Georgist land rent tax and the Japanese property tax in terms of the object of taxation and its purpose.
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