Why would any sane person even run a business if the government pays massive subsidies (public services) to make your land more valuable? Just buy more land.
Why would any sane person even run a business if the government pays massive subsidies (public services) to make your land more valuable? Just buy more land.
> the government pays massive subsidies (public services) to make your land more valuable
Most of us have to pay taxes on property we own every year, pay for many of the public services (water, sewer, trash, etc.), and the benefits returned from taxes (like roads and police) are generally not worth the amount paid in a strict sense.
If you think a plot of land is oh so valuable, may I suggest you invest in some remote plots in Nevada, as there is no shortage, and they are quite inexpensive...
This is where the Georgist idea of land value tax comes in.
If you don't think the benefits aren't worth it, why do you keep owning the property? Choosing to continue to own the property implies a revealed preference that the benefits outweigh the costs.
The biggest benefit from owning property is the right to exclusive use of a certain location for infinite time [0]. And the value of this right is proportional to how desirable living there is, which is made up of factors like economic liveness, proximity to nature, government services etc. The thing to note here is that while not all of these are due to government subsidy, all of these are the result of "other people's work"; you can just sit there and if other people do good work, the gains go to you.
Also, as a sidenote, most local services are not funded exclusively by property taxes: there's usually funding from things like sales and income taxes (either from that area, or transferred from higher levels of govt).
[0] - Minus property tax of course, but property tax is rarely equal to the benefit you get; if it was, the purchase price of the property would be 0.
For example, the federal govt's total revenue is 6 times the total property tax collected in the US (and this ignores state income/sales taxes).
In California specifically, just the personal income tax alone is more than the property tax collected. Once you add in the other sources, property tax revenue is half of non-property tax revenue.
Really? Are you referring to eminent domain? Unless you are going up against a highway, landowners have a ton of protections, in the US anyway.