ABSTRACT
While most taxes distort economic decisions and suppress beneficial economic activity, land value tax is payable regardless of how well or poorly land is actually used. The Swiss case is interesting from at least two different perspectives. First, the introduction of – or better, attempts to introduce – a land value tax has led to political controversy in other countries as well. Second, the Swiss case of introducing a land value tax system provides an interesting insight into the practical aspects of implementing such tax. Before introducing the UK and Dutch political debates with regard to taxing development gain, it is useful to distinguish this tax on development gain from developer contributions to plan-related infrastructure costs and property tax. The implementation of a land value tax — as probably any other tax — also raises questions with respect to the practicability, effectiveness, efficiency, and legitimacy of such a tax.
