It seems like a reach to say that taxation inherently destroys value. For example, in my country I think universal education, roads, universal healthcare, and border control probably all provide value in excess of their cost, and no one has proven a method of funding those things other than taxation. I guess “value” is a subjective idea, though.
reply> which can only destroy value
replyOne of the stronger arguments for LVT is that land is inherently inelastic, and thus taxing it doesn't create inefficiency (deadweight loss).
Other taxes like sales tax destroy value because they create a deadweight loss by preventing transactions that would otherwise occur. Land supply is constant, so LVT is purely a wealth transfer, and does not create inefficiencies.
>as they all involve the government and taxation - which can only destroy value, IMHO.
replyMy government and taxation provides the police, the courts, the schools, the roads, the sewers, the power, etc. Seems like a little bit of a value add.
I think you've misread the OP's point. It's not that the government doesn't provide the police (although it doesn't - the taxpayer pays for the police and staffs it). It's that government policies and regulations to try and change fundamental market forces create extremely obvious problems, although they aren't always obvious to the myopic voter.
replyYou’re very close to asking whether capitalism leads to the best quality of life, if you think of quality as going beyond the availability of products and services.
replyPeople who grew up in Soviet-era poverty of course see this differently than comfortable middle class people who feel alienated by soulless suburbia.
I think the article could be read as a way to reconcile the two.
Value creation not captured is the definition of a positive externality, and landlords being able to extract that value despite not creating them is an example of rent seeking. Aiming to address these does not somehow question capitalism.
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