But that's not how a land tax would work. The idea is that it captures most of the value of the land (removing the rent seeking ability). So the tax would be at a level that makes owning the land itself not very profitable, it's the improvement upon the land that offering return on investment.
So you'd likely see a $1M plot of land taxed at $100,000+ per year. It would make zero sense to sit on the empty plot or build a single family home. It would incentive someone to building a $10M building on it.
So you'd likely see a $1M plot of land taxed at $100,000+ per year. It would make zero sense to sit on the empty plot or build a single family home. It would incentive someone to building a $10M building on it.