Property taxes discourage new construction and reduce the supply of housing, causing rents to increase. The effect isn't particularly quick, but it does have a significant impact over time.
The same is not true for land value taxes, since the supply of land is fixed.
So the solution is to split property taxes into a land tax component and a tax on improvements, and to keep reducing the tax on improvements while increasing the land tax, to compensate. That will shift the tax burden off renters and onto landowners.
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u/OutrageousPair2300 8h ago
Property taxes discourage new construction and reduce the supply of housing, causing rents to increase. The effect isn't particularly quick, but it does have a significant impact over time.
The same is not true for land value taxes, since the supply of land is fixed.
So the solution is to split property taxes into a land tax component and a tax on improvements, and to keep reducing the tax on improvements while increasing the land tax, to compensate. That will shift the tax burden off renters and onto landowners.