&gt; If you tax a good with fixed supply, the price of that good will tend to decrease.<p>If anybody else found this claim to be counter-intuitive, the wiki article on &#x27;Land value tax&#x27; helped me understand. [1]<p>I am not convinced. The biggest problem I see is the practical one of appraising the value of the land, which depends on what the land will be used for. A landlord will almost always outbid a homeowner when buying a plot of land, because the landlord intends to monetize the land, while the homeowner intends to live on it.<p>A land value tax would favor monetization over personal use, increasing rental prices and expanding the size of the &quot;renter class&quot; while shrinking the size of the &quot;homeowner class&quot;. The result would be an effective increase in the relative price of owning a home compared to renting one.<p>Paying rent is obviously economically inferior to owning property, and any policy that encourages rental growth over homeowner growth will only increase the inequality gap. Only the wealthiest benefit from increased rental volume.<p>[1] <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Land_value_tax" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Land_value_tax</a>