Yes, for example the tax could be quadratic. Small landowners would pay 0 because x^2 is 0 for x=0 and grows very slowly for small x. But since the rent will increase with x^2 where x is the area of the owned land, large landowners will pay much higher tax. This will incentivize large landowners to sell to small landowners and thus resul…
Yes, for example the tax could be quadratic. Small landowners would pay 0 because x^2 is 0 for x=0 and grows very slowly for small x. But since the rent will increase with x^2 where x is the area of the owned land, large landowners will pay much higher tax. This will incentivize large landowners to sell to small landowners and thus result in a fair allocation of land. What counts as fair has to be determined by the political process, but that is exactly where it pays to live in a democracy. Taxes are beautiful because they can be adjusted in a democratic way by a small government and do not require any complicated regulation.
Yes, for example the tax could be quadratic. Small landowners would pay 0 because x^2 is 0 for x=0 and grows very slowly for small x. But since the rent will increase with x^2 where x is the area of the owned land, large landowners will pay much higher tax. This will incentivize large landowners to sell to small landowners and thus result in a fair allocation of land. What counts as fair has to be determined by the political process, but that is exactly where it pays to live in a democracy. Taxes are beautiful because they can be adjusted in a democratic way by a small government and do not require any complicated regulation.