> I'm not sure I follow the reasoning here. How does the existence of economic scarcity imply that it makes sense to tax anything?
Land in the right place is not merely economically scarce, it's economic land.
> But that's already inherent in the nature of scarcity -- the more demand there is for a scarce resource, the higher the price is. So businesses making use of high-value prime real estate are already paying more for it. The law of supply and demand already does what you are proposing.
Supply and demand doesn't work for land because there's no new supply. No matter how much the price goes up, people aren't going to make more.
Land in the right place is not merely economically scarce, it's economic land.
> But that's already inherent in the nature of scarcity -- the more demand there is for a scarce resource, the higher the price is. So businesses making use of high-value prime real estate are already paying more for it. The law of supply and demand already does what you are proposing.
Supply and demand doesn't work for land because there's no new supply. No matter how much the price goes up, people aren't going to make more.