Editing Land value tax (section)

===Real estate values===
The value of land reflects the value it can provide over time. This value can be measured by the [[ground rent]] that a piece of land receives on the market. The [[present value]] of ground-rent is the basis for land prices. A land value tax (LVT) will reduce the ground rent received by the landlord, and thus will decrease the price of land, holding all else constant.{{cn|date=September 2023}} The rent charged for land may also decrease as a result of efficiency gains if speculators stop hoarding unused land.{{cn|date=September 2023}}

[[Real estate bubble]]s direct savings towards [[rent-seeking]] activities rather than other investments and can contribute to [[recession]]s. Advocates claim that LVT reduces the speculative element in land pricing, thereby leaving more money for productive capital investment.<ref>{{cite magazine|last=Wetzel |first=Dave |title=The case for taxing land |magazine=New Statesman |date=20 September 2004 |url=https://www.newstatesman.com/node/195119|access-date=13 June 2008 |archive-url=https://web.archive.org/web/20070814040319/http://www.newstatesman.com/200409200007 |archive-date=14 August 2007 }}</ref>

At sufficiently high levels, LVT would cause real estate prices to fall by taxing away land rents that would otherwise become 'capitalized' into the price of real estate. It also encourages landowners to sell or develop locations that they are not using. This might cause some landowners, especially pure landowners, to resist high land value tax rates. Landowners often possess significant political influence, which may help explain the limited spread of land value taxes so far.<ref>{{cite journal |first=Julie P. |last=Smith |title=Land Value Taxation: A Critique Of 'Tax Reform, A Rational Solution' |journal=Centre for Economic Policy Research Discussion Papers |publisher=[[Australian National University]] |date=June 2000 |url=http://econrsss.anu.edu.au/pdf/DP417.pdf |access-date=13 June 2008 |issn=1442-8636 |archive-url=https://web.archive.org/web/20100401053858/http://econrsss.anu.edu.au/pdf/DP417.pdf |archive-date=1 April 2010 }}</ref>