Alternatives Quote by Herbert Simon
“Assuming that a tax increase is necessary, it is clearly preferable to impose the additional cost on land by increasing the land tax, rather than to increase the wage tax - the two alternatives open to the City (of Pittsburgh). It is the use and occupancy of property that creates the need for the municipal services that appear as the largest item in the budget - fire and police protection, waste removal, and public works. The average increase in tax bills of city residents will be about twice as great with wage tax increase than with a land tax increase.”
About This Quote
Source Speech: City Council Debate, Pittsburgh, 1970
A land tax is more equitable because it taxes the value of property used for services, not the income of residents, reducing overall burden.
In simple terms: Tax land, not wages, to be fair.
Key Takeaway
Prefer land tax over wage tax.
Themes
tax policy
equity
public finance
urban planning
Mood
analytical
pragmatic
Type
policy
economic
urban
When to use this quote
- city budgeting
- tax reform
- public services
- resident impact
Key Concepts
property value taxation
tax incidence
municipal budgeting
Questions to Reflect On
- How would a land tax affect housing affordability?
- What political obstacles exist for shifting taxes?
A Different Perspective
Land taxes may depress real estate markets and be politically unpopular.
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