100% land value tax clarification (rent or value)

I noticed that there’s a lot of confusion about what different land value tax rates imply for the tax burden, so I thought I would clarify it.

In practice, the tax is based on the value of land, because that is the easiest to observe. There is also reason to believe that this value is better to base it on as it also includes expectations about the future which reduces speculation.

The most important thing is that the land value tax is based on the after tax value. So a 100% tax rate on a 5 million euro lot does not imply a tax burden of 5 million euros.

The value is calculated using the formula:

Value = rent / (interest rate - growth rate + tax rate)

This value is then multiplied with the tax rate to get the tax burden.

Here is the tax burden for different tax rates on a 50000 land rent lot with 3% interest rate and 2% growth rate.

0%: 0 (market value aka pre-tax value: 5,000,000)
1%: 25,000 (market value: 2,500,000)
2%: 33,333 (market value: 1,666,667)
5%: 41,667 (market value: 833,333)
10%: 45,455 (market value: 454,545)
50%: 49,020 (market value: 98,039)
90%: 49,451 (market value: 54,945)
100%: 49,505 (market value: 49,505)

As the tax rate goes towards 100%, it goes towards the land rent.
If the tax was on the rental value it would be like this:

1%: 500
2%: 1,000
5%: 2,500
10%: 5,000
50%: 25,000
90%: 45,000
100%: 50,000

But we don’t work with land rents cause those are not observed in practice.

So when people talk about a 100% tax rate on land value, they may mean land rent, but it’s likely that they are talking about land value too. The main reason you wouldn’t want a 100% tax rate is because of the margin of error in assessments that could cause abandonment if too high. Another takeaway from this is that there is not that much difference between a 100% tax rate and a 10% tax rate and that there’s a big difference between 1% tax rate and a 2% tax rate. Advocating for a 5% or 10% tax rate is probably enough, and would still go a very long way in completely shifting the tax picture.

Recommended reading: https://www.maxwell.syr.edu/docs/default-source/research/post-corona-balanced-budget-super-stimulus.pdf?sfvrsn=4a481ae0\_5

Edit: corrected some math

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u/victornielsendane — 4 days ago

Does anybody feel like the app is quite unintuitive in terms of how to find your list?

When I use the app, it’s usually cause I want to either find my “to watch list” (for suggestions on what to watch) or “my ratings list” (for suggestions for friends to watch). I feel like these two lists should be in the same space. A few things (sorry I can’t correct the formatting on my phone):

  1. I’d expect my lists to be in the “lists” tab on the first page.

But this tab is only for lists that you manually create. Not an automatic list of all watched or to watch.
2.

  1. I understand they are on my profile page, but then I’d expect them to either be under “lists” or “watchlist”

. But again lists are lists you create and watchlist is only one of the things.
3.

  1. Watchlist then only shows movies to watch. It’s not clear that watch list means “to watch”. It could also mean “watched”. Intuitively you then might think it’s a list that contains both. Especially, since there is a filter that lets you filter for only movies you have seen, but oh, then the list is empty.
  2. So where do I find movies I have watched and/or rated? I have to go to the profile tab, which is a page that doesn’t indicate that it has anything more than recent activity and a graph of my ratings. But no, you scroll past an ad, and there is a list of different items. The one you are looking for is called “films” - which could mean anything on this app. There’s also “reviews”, “likes”, “watchlist”, but you have to know that the “films is the right button.
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u/victornielsendane — 25 days ago

Is there a program building mode for when you’re cutting? (Jeff has made a video about specifically going to failure but less sets for cutting)

I’m finding it a bit demoticating that I lose strength during my cut. Was wondering if there was a way for the app to build the program differently for cutting.

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u/victornielsendane — 2 months ago

Choosing which type of exercises have warm up included

Is there a way to choose that for example only compound movements have warm up or only barbell exercises or only the first x number of exercises in each workout? I know I can manually change it, but I believe the automated program generator when including warm up overestimates the time if all exercises have warm ups included.

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u/victornielsendane — 3 months ago

Changing gyms with new machines (but same machine in the app)

I was wondering how you all deal with switching gyms and then discovering that many of the machines and cables have different amount of wheels making the weights different.

How does the automatic rep and weight calculation deal with that? It also bothers me a bit that the records and graphs will not take this into consideration.

It’s easy if the machine you use is actually just a different exercise, but sometimes it’s the same exercise machine but working quite different in different gyms in terms of weight.

I noticed for example needing almost double weight on pec dec fly or half weight on low cable row.

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u/victornielsendane — 3 months ago
▲ 283 r/Denmark

/r/Denmark inspirerede mig til at skrive det her kronikindlæg som lige er kommet i Politiken!: Vi bekæmper symptomerne på boligkrisen, men ignorerer årsagerne

For nogle måneder siden lavede jeg den her post: https://www.reddit.com/r/Denmark/comments/1retop3/for_at_komme_ud_af_vores_boligproblem_b%C3%B8r_vi_se/

Den skabte en del interesse herinde, og det inspirerede mig til at skrive et kronikindlæg til Politiken, og den er lige udgivet og vil være i dagens avis!

Tak til jer alle sammen som viste så stor interesse i artiklen.

Edit: Tror dette gavelink skulle virke: https://politiken.dk/del/hhlbRfAHRm3A

politiken.dk
u/victornielsendane — 3 months ago