Land Value Tax
Henry George was confused when he learned that rapidly growing cities with excessive wealth contain greater poverty than most less-developed places. His take was that too much wealth was going to landowners via rents and that the problem could be solved simply by putting a tax on land value. In "Progress and Poverty", George tried to explain why poverty exists even when there are tremendous amounts of wealth in cities. He saw how technological and social advances increased the value of land and how the amount of wealth demanded by owners increase by way of rent. As an alternative to this problem, he proposed a single tax on land. George argues that a land value tax would give landowners an incentive to use well located land in a productive way, thereby increasing demand for labor and creating wealth. This shift between owners and laborers would raise wages and ensure no one need suffer poverty. According to his theory, land value tax would end urban sprawl and reduce...