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One of the key arguments in favor of enforcing private property rights when this idea was taking shape during the Enlightenment is that they are a powerful incentive to develop. So an additional incentive to either generate revenue from the land, or sell to someone who is willing to, is very much in the spirit of modern property rights.


Developed land does not have to bring revenue (or even profit). May I not have just an illiquid house on a plot of land and no other assets?


> I not have just an illiquid house

if you live in it, then a land value tax is equivalent to the state charging you a tax on the imputed rent you receive from owning your own abode.

If you don't live in it, but rent it out, then that's self explanatory - you use the rental income to pay the tax.

If you don't rent it out, then it's your loss as you have to pay the tax out of pocket. This means you will need to rent it out.




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