Justice through Land Taxation?

An Economic-Ethical Analysis of Property Tax Models in Germany

Abstract

Over 150 years ago, Henry George identified private property in land as the central cause of social inequality and proposed a pure tax on land rents as a solution. This diagnosis remains relevant today. Private property in land can still be considered inefficient and unjust from both an economic and economic ethics perspective. Among the reform models discussed during the latest property tax reform in Germany, the land value tax proves to be economically more efficient and normatively preferable. It reduces structural privileges associated with land ownership and strengthens the life and development opportunities of disadvantaged groups. However, it only contributes to a more just and sustainable use of land when combined with planning and social policy measures.