Summarizing studies of the impacts of land value tax (LVT) in the economic literature. Where possible, citations contain empirical investigations.
LVT discourages land speculation and lowers vacancy rates
LVT encourages infill and discourages urban sprawl:
LVT increases the rate of housing construction
LVT lowers rents
LVT is not passed on into higher rents, instead it lowers land prices:
LVT increases the rate of business formation
LVT increases employment and output
LVT improves tax compliance and lowers rates of tax foreclosure
LVT is efficient, it does not distort economic decisions or create deadweight loss:
LVT incentivizes optimal municipal governance, makes good public investments self-funding
LVT will reduce inequality, challenge land’s underlying role in inequality
Additional claims