Part 7/11:
Henry George saw this tax as inherently fair: it captures economic rent generated by societal progress rather than punishing productive effort. Prominent economists like Milton Friedman later lauded LVT as one of the “least bad” taxes, emphasizing its ability to promote efficient land use and discourage speculative holding of land parcels.
Limitations and Challenges of LVT
While appealing in theory, practical challenges persist. Land values can fluctuate with economic conditions, infrastructure investments, and technological changes—factors influenced heavily by automation and future societal shifts. As automation transforms labor markets, the traditional basis for such taxes may need adaptation, as job displacement and reduced income may impact land values differently.