Actually what happens is without land value tax, you get land speculation. In practice with Land tax, you&#x27;d have cheaper land than without it because there is no incentive to speculate and hold productive land out of use hoping its value will go up (which is where most of the price of real estate comes from -- it&#x27;s a &quot;safe bet&quot; that land values increase as long as the area&#x27;s population increases, so there is no incentive NOT to speculate and drive prices way up).<p>An interesting phenomenon like this played out in EVE online where an economist independently re-discovered the land tax:
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