There&#x27;s a alternate hypothesis [1] put forward that increasing inequality is mostly due to an increase in housing costs.<p>If this is the case, then it would likely be better to implement land taxes. Land taxes are probably better than most taxes for a variety of reasons, but if we are directly looking to decrease inequality land taxes would strike at the root cause.<p>I am not an economist, so I&#x27;m not equipped to evaluate either set of claims. Is there anyone here who might know what they&#x27;re talking about who can weigh in?<p>[1]<a href="http:&#x2F;&#x2F;www.mit.edu&#x2F;~mrognlie&#x2F;piketty_diminishing_returns.pdf" rel="nofollow">http:&#x2F;&#x2F;www.mit.edu&#x2F;~mrognlie&#x2F;piketty_diminishing_returns.pdf</a>