UNEARNED
INCREMENT
That
part of land value which reflects value from the surrounding public
infrastructure such as public services and roads.
It is the basis of rating and taxing on land or unimproved values
only. Under Henry George's
theory on taxation, the unearned increment only is taxed (unimproved or
land value) because it is not a discentive for improving the land. This
concept encourages economic development.
See
Henry George
rating
and taxing
unimproved
value.