[..] The justification for a lower tax rate on capital gains relative to ordinary income is threefold: it is not indexed for inflation, it is a double tax, and it encourages present consumption over future consumption. ... Finally, a capital gains tax, like nearly all of the federal tax code, is a tax on future consumption.[..]
Yup, that too. It’s another consideration that I don’t think ought to be made for land appreciation. In fact, because it doesn’t account for inflation, for the longest holders of land, a high LAT functions like a very mild LVT in practice, while also neutralizing the attractiveness of land as an investment vehicle in general.
[..] The justification for a lower tax rate on capital gains relative to ordinary income is threefold: it is not indexed for inflation, it is a double tax, and it encourages present consumption over future consumption. ... Finally, a capital gains tax, like nearly all of the federal tax code, is a tax on future consumption.[..]