“Because government takes in more money if property values are higher, some perverse incentives are created. The monstrous abuse of eminent domain proceedings stems directly from property taxation based on value. Cities discovered that they could raise their revenue by declaring areas as ‘blighted,’ forcing the owners to sell, then do some ‘economic development’ by arranging for higher-valued structures on the vacant properties. Single family homes have been destroyed and then replaced by large condos, big-box stores, malls, or mixed-use developments, which produce higher property tax revenue. Of course, doing economic development has resulted in much larger, more expensive government too.” (08/26/08)