&gt; the primary function of government is to defend claims on the use of land, and having the &quot;land&quot; pay directly for this is at least of a nice sounding symmetry.<p>Some claim that to be the primary function of government but it certainly isn&#x27;t the primary element of the government budget.<p>&gt; And theoretically, people would then be forced to productive investment rather than land speculation.<p>Thwarting land speculation is literally the same thing as not allowing land values to increase. LVT reduces land values because of the overhang of the future tax payments, but it also has various negative consequences. If you want to keep land values down, enact policies that encourage the construction and occupation of high density housing. In particular, don&#x27;t explicitly impede it through zoning regulations etc.