Landing a new tax
The current tax system is inefficient and unfair. Lawmakers can fix it by replacing all current taxes with a single land-value tax.
The current tax system is inefficient and unfair. Lawmakers can fix it by replacing all current taxes with a single land-value tax. This would cure the housing crisis, stimulate economic growth, and reduce inequality.
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An intergenerational tug-of-war between homeowners and young people is in full heave. Inequality is rising, and voters feel aggrieved. Those born after 1980 have a smaller slice of wealth at the same age than generations before. Rich countries face housing crises, and their leaders have left 'generation rent' to pick up the tab.
The tax code's complexity and inefficiency are part of the problem—America's is over 4m words long. Political jawboning is also to blame. Lawmakers say a lack of supply has caused the housing crisis, yet they do nothing to fix it. But why would they? They, and their homeowning voters, are financial beneficiaries.
So, what should the government do to repair the broken tax system? One solution is to replace all national…