Editing Land value tax (section)

=== Speculation ===
{{further|Speculation}}
[[File:Baulücke in Köln-Weidenpesch (9506).jpg|thumb|right|With an LVT, both this abandoned lot and the adjacent buildings would pay the same amount in taxes. This incentivizes the owner to use the land for economic activity or sell it to someone who will.]]
The owner of a vacant lot in a thriving city must still pay a tax and would rationally perceive the property as a financial liability, encouraging them to put the land to use in order to cover the tax. LVT removes financial incentives to hold unused land solely for price appreciation, making more land available for productive uses. Land value tax creates an incentive to convert these sites to more intensive private uses or into public purposes.