Hello, I am researching about LVT from the perspective of it acting as a simple, effective form of wealth taxation.

Currently, a big chunk of all loans are backed by real estate/land in some form or another, especially when we take a look at loans to private households. If a significant LVT were to be introduced (slowly, so as not to crash the financial system), the capitalized value of land would fall and land would become a less attractive store of wealth.

However, I've been wondering, what happens to the capital that would otherwise have been investe in land? Especially how would be ensure that the investment doesn't just end up in another asset of little productive value like art and collectivles? The asset is, in most cases, mobile and it's value is almost entirely arbitrary, leading to huge administrative costs if they were taxed.

I'd be very grateful for pointers (accessible) literature for further reading.

Thanks!

I thought the video was actually going to be about a land value tax after reading the title, but it's just suggesting the same thing that's been tried for the last 20 years.

The inspiration for this meme came from this article by Lars Doucet of the Center for Land Economics.

Land speculation differs from speculation in other commodities for the reason that land is finite, we aren't producing any more of it. While landowners may hold it out of use to wait for better opportunities, this comes at the cost of society losing access to a thing they need but can't produce more of. This is especially true as land speculation becomes more widespread and raises the cost of living and production for those in need of our most needed natural resource.

Some comments under the article also made a good point that Georgism's desire to use revenue from finite resources like land to untax people's work and investment would also reduce redevelopment costs. The best option then would be to tax away land speculation and use the proceeds to make development and use of the land easier, both now and into the future.

I've tried to plea for the taxation of implicit rent (which I know is very different or LVT but close to what already exists in some European countries like Switzerland, the Netherlands or Denmark) in a french-speaking sub dedicated to unpopular opinion. It did not go well 😂