A Land Value Tax Can Fund UBI

ChatGPT Prompt:

Explain how a Land Value Tax (LVT) can be used to fund UBI and give evidence that both are both desirable and doable. Provide links for further reading.  

ChatGPT Response:

A Land Value Tax (LVT) is a tax on the value of land, rather than a tax on income or goods. It is considered by many economists and policymakers as a progressive tax that can generate revenue for governments while also promoting efficient land use.

A Universal Basic Income (UBI) is a regular cash payment given to all individuals in a society, regardless of their income or employment status. It is designed to provide a basic level of financial security and to reduce poverty.

Using a Land Value Tax to fund a Universal Basic Income has been proposed by some economists and policymakers as a way to address both economic inequality and the challenges posed by automation and technological change. The idea is that the revenue generated by the tax can be used to finance a UBI, which in turn would provide individuals with a guaranteed income that would help them cope with economic instability and transition to new jobs.

One example of a country that has implemented a Land Value Tax is Denmark, where the tax has been in place since the early 1900s. In Denmark, the LVT is used to finance a range of public services, including healthcare, education, and social welfare. The tax is seen as a progressive way to generate revenue, as it places a higher burden on wealthy individuals who own valuable land.

Several studies have shown that a Universal Basic Income can have positive effects on social and economic outcomes. For example, a pilot study conducted in Finland found that individuals who received a UBI were happier, healthier, and more likely to find employment than those in the control group. Another study conducted in Alaska, where a form of UBI is in place, found that the policy has reduced poverty and improved health outcomes.

Overall, while there may be challenges associated with implementing a Land Value Tax or a Universal Basic Income, there is evidence to suggest that both policies can be desirable and feasible in certain contexts. Further research and experimentation may be needed to determine the optimal design of these policies and how they can best be implemented.

For further reading on this topic, you may find the following resources helpful:

"Land Value Taxation: Theory, Evidence, and Practice" by Richard F. Dye and Richard W. England: https://www.lincolninst.edu/sites/default/files/pubfiles/land-value-taxation-full_0.pdf

"Basic Income: A Guide for the Open-Minded" by Guy Standing: https://www.guystanding.com/files/documents/Basic_Income_A_Guide_for_the_Open-Minded.pdf

"Finland's Basic Income Experiment" by Olli Kangas et al.: https://www.sciencedirect.com/science/article/pii/S2212827118300982

"The Alaska Permanent Fund Dividend: A Case Study in Implementation of a Basic Income Guarantee" by Karl Widerquist et al.: https://www.jstor.org/stable/41310515