Geolibertarianism by other means — Part 4: solutions

I think it best to handle land and natural resources separately.

As for land, what could be done is the following: Make landholders responsible for infrastructure to the extent possible. When funding infrastructure that landholders can’t be expected to maintain, resort to assessments.

The reasoning is as follows:  Infrastructure has to be paid for anyway.  With lower taxes a given jurisdiction becomes a more coveted location to set up shop.  In turn it should be easier to charge higher rents.  I suspect that when the increase in the value of land doesn’t at least match the cost of a particular investment in infrastructure, the infrastructure in question isn’t economical.

Interstate highways are an example of something that should be funded by assessments. The same can probably be said of projects funded by other means under Ohio’s “Third Frontier” Constitutional amendment.

As for natural resources, taxing natural resources discourages their use and lowers their value.

Another possibility is to tax the land and natural resource content of imported goods. Perhaps tax land and natural resources at near 100% and allow credits for those jurisdictions which do the same. This may be a complicated approach, but has its merits.

Even the above approach has its problems, Saudi Arabia could tax its own oil and get credits for that when exporting to the U.S. under that approach. The natural resources are concentrated in countries that refuse to develop. Another matter is that we all live on the same planet. In other words, its not really their oil either.  It can even be argued that its ours because of the fact that it takes Western technology to extract it.

We could instead use high natural resource taxes to not only fund dividends/social salaries to all citizens but to buy up the revenue stream from natural resources through some future innovations in the financial markets as well. Such a policy would have the effect of a high sales tax on consumption, thereby encouraging investing and lowering interest rates. (As stated in an earlier posting I believe that by using rent (land and natural resources) to corner capital opportunity has been hoarded by the few and rates of return kept artificially high.)

In a globalized economy capital seeks the highest rate of return, so using income and wealth taxes are unfortunately becoming increasingly non-viable options.

It would be best if America developed alternative sources of natural resources, even if that means building something along the lines of StarTram or John “Josh” Storrs Hall’s Space Pier in order to make the cost of reaching orbit (on a per unit of mass basis) low enough. Then use plasma rockets, tethers, or light sails and lasers to get to a high enough of an orbit to use mini-magnetospheric plasma propulsion (M2P2) the rest of the way.

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