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Saving Communities It Matters How Government Raises Its Revenue Edward J. Dodson, M.L.A. Director, School of Cooperative Individualism

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Presentation on theme: "Saving Communities It Matters How Government Raises Its Revenue Edward J. Dodson, M.L.A. Director, School of Cooperative Individualism"— Presentation transcript:

1 Saving Communities It Matters How Government Raises Its Revenue Edward J. Dodson, M.L.A. Director, School of Cooperative Individualism Email: scimail@comcast.netscimail@comcast.net Website: www.cooperativeindividualism.orgwww.cooperativeindividualism.org

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3 Larry Eichel,

4 “In Pennsylvania … fragmented government remains a way of life. Anything smacking of regionalism is still a tough sell...”

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6 Robert P. Inman

7 “There is much to recommend our region’s decentralized system of public finance. But when there are important economic interdependencies across local jurisdictions, fiscal cooperation … is required.”

8 Local government is less able today to rely on state and federal revenue sharing to balance budgets.

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12  Individual incomes?  Business profits?  Sales of goods?  Fees for services?  Real property?  Personal property?  Sales of real and personal property?  Other?

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24  Annual ground rent ….. $110,000  Annual property tax …. 10,000  Net ground rent ……… $100,000  Market rate of return... 5%  Capitalized minimum selling price … $2,000,000

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26 “Buy land. They ain't making any more of the stuff.”

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28 “Some day there may come into existence the ideal city, a city that, from our present conservatively cruel point of view, may seem a dream city, although there are, even now, some remote approximations to it. In that city a tax will take all or nearly all the rental value of all the land, to be used for the common benefit. Improvements, brought into existence by the labor and thrift of individuals, will be tax exempt or nearly so. Tax burdens on the necessities of the poor will not be preferred to tax levies on community-produced land values.”

29 Nicolaus Tideman, Professor of Economics, Virginia Polytechnic Institute Mason Gaffney, Prof. Of Economics, University of California, Riverside

30 “A very important effect of taxing land is the opportunity it provides for removing non- neutral taxes such as those on improvements. This is highly stimulative of development. A related stimulative opportunity that is created by taxing land is the opportunity to provide services such as water, sewerage and electricity at marginal cost.”

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32 “The unique, remarkable quality of a property tax based on land ex buildings is that you may raise the rate with no fear of driving away business, construction, people, jobs, or capital! You certainly will not drive away the land. However high the tax rate, not one square foot of it will put on a track shoe and hop out of town.”

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34 “I believe the Graded Tax plan, which was adopted here in 1913 by an act of the state legislature, has done a great deal to encourage the improvement of real estate in general, and especially the building of homes and apartments. And I think it has been particularly fair and beneficial to homeowners.”

35 * Wallace Oates and Robert Schwab, Robert. “The Impact of Urban Land Taxes: The Pittsburgh Experience.” National Tax Journal L1 (March 1997) p. 2

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37 POPULATION  Pittsburgh’s population fell by 6.5% from 2000 to 2006, to around 312,800

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40 “The current national job loss crisis has finally brought public attention to this issue. We are asking Council’s support to help stem the tide of this human misery. As a matter of fact, urban communities have been in a recession long before it became a public matter. While national unemployment is now at double digits (10) percent, it has been double digits for African Americans since 2008 and since 2009 for Latinos. The two populations make up more than 50% of our population, thus calling for a greater demand for workforce development, more business development and housing construction.”

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43 "The City of Harrisburg continues in the view that a land value taxation system, which places a much higher tax rate on land than on improvements, is an important incentive for the highest and best use of land...and continues to be one of the key local policies that has been factored into this initial economic success here.” Stephen R. Reed Mayor, City of Harrisburg

44 Joshua Vincent, Director Offices of the Center for the Study of Economics, Philadelphia, Pennsylvania


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