The Moral Imperative of Property Taxes
Property taxes are a significant source of funding for local government services such as public schools, police, fire departments, emergency medical technicians (EMTs), and infrastructure like streets and roads. These services are crucial for the functioning of a community. It would be imoral not to contribute your share to the maintenance and betterment of these services.
Why Wouldn’t Property Taxes Be Moral?
Many might argue that they are paying for various public services, including police, fire departments, roads, traffic signs, schools, and courts through property taxes. However, the question arises: how can this be considered moral?
The Aggression of Exclusive Possession
The act of acquiring unowned land or land from someone who had unowned land originally can be seen as an act of aggression against neighbors who had prior uses of the land. When you purchase land, you perpetuate the aggression started by the initial possessor. In order to make redress to your neighbors for this damage, it is only right and moral to compensate them. The value of this compensation is reflected in property taxes.
By retaining all the benefits of land ownership for yourself, you agree to help your neighbors by mitigating the costs imposed on them. In exchange for this right to exclusive possession, property taxes act as a fair and moral form of compensation.
Land Value Tax – A Moral Tax in a Moral Society
Property taxes, specifically Land Value Tax (LVT) or taxes on the unimproved value of land, are considered the most moral of all taxes. When you pay income tax, you are financing something that benefits others through your own actions. In contrast, when you pay taxes on land you own, you are compensating for the increased value of that land, which is largely a result of the actions of nearby communities, not your own actions.
Conclusion
The system of property taxes, including LVT, serves as a social contract that ensures fairness and benefits for all members of the community. By taking into account the value and actions of the entire community, these taxes help redistribute wealth in a way that aligns with moral principles of justice and equity.
Understanding the moral imperative behind property taxes can help individuals and policymakers implement more inclusive and equitable tax systems that reflect the true value of land and the collective contributions of a community.