Herberger tax

The Harberger Tax, an innovative tax on land and property, was proposed by American economist Arnold Harberger. This tax system aims to promote the efficient use and liquidity of land and assets.

The basic concept of the Herberger tax is as follows

• Property owners self-report the value of land and assets they own.
• Tax is collected at a fixed rate on the declared value.
• The declared price is publicly available and anyone can purchase assets at that price.

Under this system, property owners will be incentivized to

• Declaring a higher price will result in higher taxes, but lower risk of the asset being sold.
• Declaring a lower price will result in lower taxes, but also increases the risk that the asset will be sold.

It is believed that these incentives will encourage property owners to report the fair value of their assets, thereby increasing asset liquidity and promoting efficient use of assets. The Herberger tax could apply to a variety of assets, including land, real estate, intellectual property, and stocks. However, this tax system has not yet been generally introduced due to various challenges to actual policy implementation.

- I see... [[mechanism design]] that determines the price of land in an [[auction]] way.

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