Yes, head taxes are the least distortionary in most models.
Land taxes are similarly less distortionary, provided they are on the unimproved value, since they don’t alter the use already owned land is put towards. They may discourage developing new land though.
However, my guess is that politicians will not content themselves with only taxing unimproved land.
Yes, head taxes are the least distortionary in most models.
Land taxes are similarly less distortionary, provided they are on the unimproved value, since they don’t alter the use already owned land is put towards. They may discourage developing new land though.
However, my guess is that politicians will not content themselves with only taxing unimproved land.