State and Scope of Property Taxation in Bangladesh
☐ Modern economists, such as Piketty (2014)
emphasized that the rate of return from capital is
greater than the growth of output (i.e., total income)
☐ Untaxed investments in properties create a
divergent force triggering wealth inequality.
These divergent forces lead to social and economic
instability in the long run
☐ Convergent forces, such as increased quality of
education, healthcare, and social protection,
should be invested in, which lead to more inclusive
and sustainable growth
☐ Thus, Adam Smith, Henry George, Marx, and
Piketty advocated for a tax on properties to
finance public service delivery, creating a
virtuous cycle
Section 1: Introduction - Context
1
Investments are made
in properties such as
land and buildings
5
More efficient
public service
delivery allows
for social mobility,
leading to wealth
creation for the
middle class
2
These properties
benefit from
significantly higher
rates of return Than
labour income
Virtuous Cycle of
Inclusive Growth
As a Result of
Modern Property
Taxes
4
The revenue gained from
the tax can then be spent
on more efficient public
service delivery
3
Governments
can internalise
these returns by
imposing.
progressive
taxes on
property
State and Scope of Property Taxation in Bangladesh
Source: Authors' visualisation adapted from Piketty's conceptual framework
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