Taxation foncière redistributive : une fondation macroéconomique du georgisme

Henry George?s ideas have seemed to be ruled out for more than a century. His main idea was to finance a basic income from a tax levied on land rent. We first discuss the reasons that may explain the surge in French land prices. We then look how this idea can be discussed in the framework of a model where capitalists do not only own capital but also developed land. We first show that the tax on capital is not a first-best tax, whereas a property tax or a living tax are first-best taxes that can be used to finance a benefit for working poor. In particular, the living tax is fully supported by the landlords in a context where developed land is fixed. In that case, abolishing the living tax would result in rent increase. The role of the rent elasticity of housing is emphasized when population grows. In conclusion, we discuss some policy recommendations that can be derived from the analysis in the French context.