Thursday, December 3, 2009

Krugman Addresses George

"Well, look. Believe it or not, urban economics models actually do suggest that Georgist taxation would be the right approach at least to finance city growth. But I would just say: I don't think you can raise nearly enough money to run a modern welfare state by taxing land. It's just not a big enough thing."

The context was health care. "We're having enough trouble trying to make sure we repeal the Bush tax cuts," Krugman added, "and trying to shift to a completely different base of taxation is just not going to be on the table."

True, but let's stay in the realm of theory for a minute. Could a land tax pay for a health care system?

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