Memorandum: AI, UBI, and LVT

Introduction.

Artificial Intelligence.

The significance of the last two sentences cannot be overstated: of all the reasons for UBI, AI is different in kind because after AI there will be fewer jobs than there were before and we will enter a “post-capitalism” era.

Taxation.

Examples include: “We need a tax cut.” “Taxes are too high.“ “We need to raise taxes on the wealthy.” “Warren Buffett pays a lower tax rate than his secretary.”

Option 1: taxing capital/profits.

Issue 1: volatility of revenue.

Issue 2: inhibiting innovation and progress.

Issue 3: mobility.

Option 2: taxing wealth.

Option 3: taxing land.

What is land?

Land and capital are (very) different.

The philosophical and legal basis of property.

The creation of value in land.

Ownership versus exclusive use.

What are the consequences of private ownership of land?

Poverty and inequality.

Ricardo’s Law of Rent states that the rent on land is equal to the productive value of that land minus the productive value of the most productive free land available. This is precisely what we have intuited and derived.

Thus, Ricardo’s Law of Rent says that when there is no longer any free land available, the rent on land becomes the productive value of the land minus the least amount anyone in the society is willing to work for.

Recessions and unemployment.

Competition.

What are the consequences of taxing the ownership of land?

A brief history.

Canons of Taxation.

No deadweight loss.

A land value tax cannot be passed on.

Calling land into its highest and best use.

Formerly unviable land becomes viable.

Eliminate unemployment and raise wages.

An end to speculation in land and recessions.

Free up credit for productive uses, lower interest rates, and end inflation.

Eliminate barrier of entry to business and promote true competition.

Self funding infrastructure.

An end to NIMBYism.

A stable and sustainable tax base.

Environmental benefits.

Under which system do you think we will be more likely to develop a culture and legal system that protests and conserves the environment?

AI, UBI, and LVT.

In fact, this is the realization of the vision that the earth is the common inheritance of all mankind for the provision of all of mankind. All would be provided with a basic income from the provision of the earth.

BS Math & Masters in Public Policy, Cal Poly. JD, Georgetown. Minimalism, digital nomadism, reading, eating well, exercise, good coffee and conversation, LVT.