State and Scope of Property Taxation in Bangladesh
Section 1: Introduction - Context
Classical Theory
.
Adam Smith and Henry George advocated for land taxes. According to Smith (1776) and George
(1879), taxing land was seen as less destabilising to market forces than other taxes, such as income tax,
which was perceived to disincentivise higher levels of productivity
According to George (1879), Land taxes do not diminish productivity from land investments as land
productivity generally increases with respect to time, regardless of further investment
Alternative Theory
•
According to Marx (1848; 1867), a radical economist, the fundamental cause of social instability and
injustice lies in the discrepancy between the wealth generated by land investments and the income
derived from labour
State and Scope of Property Taxation in Bangladesh
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