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AFFEERCE Volume I – the Vision 4.1.5

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AFFEERCE Volume I – the Vision 4.1.5 AFFEERCE Volume I – The Vision 4.1.5 It is a position not to be controverted that the earth, in its natural, uncultivated state was, and ever would have continued to be, the common property of the human race. In that state every man would have been born to property. He would have been a joint life proprietor with rest in the property of the soil, and in all its natural productions, vegetable and animal…Every proprietor, therefore, of cultivated lands, owes to the community a ground-rent (for I know of no better term to express the idea) for the land which he holds; and it is from this ground-rent that the fund proposed in this plan is to issue. – Thomas Paine Jeff Graubart Copyright © 2016 Jeff Graubart All rights reserved. ISBN: 0692472835 ISBN-13: 978-0692472835 DEDICATION To the World ACKNOWLEDGMENTS I thank the following individuals and organizations for helping in some way, big or small, in helping to shape the vision and the plan. Inclusion in this list does not imply endorsement of AFFEERCE or any of the ideas presented. All errors are my responsibility, alone. Nate Blair, Kevin Carson, Mike Curtis, Ed Dodson, Fred Foldvary, Lawrence Hartman, Henry George School of Chicago, Todd Kemnitz, Lorraine Lee, Peter Loudon, Helen Marsh, Edward Miller, Will Schnack, Jami Steinberg Table of Contents Introduction ............................................................................................................................................................. 1 The Law of Rent.................................................................................................................................................... 2 Chapter 1 – What is AFFEERCE? ............................................................................................................................... 9 A Summary ........................................................................................................................................................... 9 The Acronym ...................................................................................................................................................... 12 The Assumptions ................................................................................................................................................ 14 A Brief Survey of the Tax Burden........................................................................................................................ 16 The Fundamental Relations ................................................................................................................................ 18 The VIP ............................................................................................................................................................... 19 Chapter 2 – Collection of the Ground Rents........................................................................................................... 24 Introduction ....................................................................................................................................................... 24 Land Speculation ................................................................................................................................................ 24 Location Value .................................................................................................................................................... 26 Objective Value .............................................................................................................................................. 26 Subjective Value ............................................................................................................................................. 26 Georgist Theory of Value ................................................................................................................................ 26 Profits and Location Value.............................................................................................................................. 27 Problems with Land Assessment ........................................................................................................................ 27 Objective Scoring ........................................................................................................................................... 27 Corruption ...................................................................................................................................................... 28 Other Biases ................................................................................................................................................... 28 Comparable Sales ........................................................................................................................................... 29 Location Monopoly ........................................................................................................................................ 29 Leverage and the High Location Value Land Tax ............................................................................................ 30 Moral Hazard and Assessor Criteria ............................................................................................................... 32 The Land Value Tax is an Oxymoron ............................................................................................................... 32 Rental of the Commons...................................................................................................................................... 33 How Can We Solve the Problems of Land Assessment ................................................................................... 33 Self-assessment .............................................................................................................................................. 33 The Synthesis of Objectivism and Subjectivism .............................................................................................. 34 AFFEERCE – Volume I – The Vision The Basis for Common Ownership of the Land ..................................................................................................34 U.S. Land Use ......................................................................................................................................................35 Trebling ..............................................................................................................................................................36 Beware the Treblers? .....................................................................................................................................36 Online Trebling System ...................................................................................................................................36 How does Trebling Work ................................................................................................................................37 Zero Sum ........................................................................................................................................................39 What if the Ground Rent isn’t Paid? ...............................................................................................................39 Trebling Law ...................................................................................................................................................39 Monopoly of Location Value...........................................................................................................................40 How Trebling Determines a Fair Ground Rent ................................................................................................40 Treble Equilibrium ..........................................................................................................................................41 How Ground Rent Is Paid ................................................................................................................................43 Trebling and Bank Loans (Trebler Mortgages) ................................................................................................43 Reasonable Use of the Land ...............................................................................................................................45 Objective Depreciated Value (ODV) ...................................................................................................................45 Covenants ...........................................................................................................................................................45 Jurisdictional Covenants .................................................................................................................................46 Purchased Covenants .....................................................................................................................................46 Covenant Patterns ..........................................................................................................................................47 Ground Rent and Industry ..................................................................................................................................48 Hostile Takeover .............................................................................................................................................48 Oil and Minerals .............................................................................................................................................50
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