General Discussion

Why a land tax? Many (most? all?) towns and cities have a real estate tax.

Good question because I think land value is important.

Pretty much every country in the west has a housing shortage. There is no free land anywhere downtown so you can't just take some land and build on it for free.

With real estate tax. Let's say you have 3 patches of land around the central railway station downtown. You have huge office building on one, you have a old, crappy by modern standard, home and you have a vacant lot that the owner can't be bothered doing anything with. They all get taxed three different amounts. In fact by taxing them different amounts you are encouraging the market to devalue assets on that land to minimise their taxes.

If taxes were based on the value of that land it would incenitivise you to maximise the space. So a 1 person home would end up paying 10x that of a 10 home apartment complex per home. Low cost housing would be cheaper, lavish estate homes would be costlier.

If you want a market oriented fix to the housing crisis, to low density, to lack of public transport, for people buying land and sitting on it doing nothing, for rich people not paying taxes on thing and just holding onto wealth they have inherited. Then land value tax solves all these issues, or at least encourages it.

(I still think corporations should be able to own homes. It's a fantasy to expect the hosuing system to be better without it. But I does need fixing LVT is a way to help fix it).

There's a movement called Georgism that advocates for abolishment of all taxes, except for a land-value tax. ("Land" being any extractive natural resource use.) It's really the only fair tax system. At the risk of oversimplifying it: All wealth comes from a combination of natural resources and labor. Natural resources belong to all of humanity, so it's not fair to give ownership of them to well-connected individuals or firms to profit from extracting and selling them. On the other side, an individual's labor is the only thing that people have that's entirely their own. It's not fair to tax individual labor, like an income tax, as nobody else should have any claim on its value. Thus, the taxes to run a society should come from the use of humanity's limited store of natural resources/land, rather than have value which belongs to us all disappear info the pockets of a few individuals, while most people must work to justify their existence while the value of that labor is siphoned away.