The central principle of the “Land Value Tax” which makes it different from normal Property Taxes, is that it would be the land only – so, for example, someone who kept land as a nature reserve, would pay the same tax as someone who built a factory on the land.
In the United Kingdom, since 1929, farmland has not been subject to Property Tax (called “Rates” here – a form of taxation that goes all the way back to Tudor times, first introduced to fund the Poor Law – most of Scotland did not have such a system till 1845, France did not have Poor Law style benefits till well into the 20th century), farmers, if they owned the land, would have to pay the Land Value Tax – thus turning farmers into tenants of the state. Although, of course, much would depend on how high the tax is – what really matters about taxation is not the exact form of it, but how high it is. There is no such thing as a “good tax” – all taxation is harmful, but how harmful taxation will be is determined by how heavy the burden of taxation is.
For example, property taxes in Alabama do much less harm than property taxes in New Jersey – but this is NOT because property taxes are structured fundamentally differently in New Jersey than they are in Alabama – it is just that they are much HIGHER in New Jersey, and, therefore, do more harm.
That is why, for example, the present obsession of the Tax Foundation with the exact way taxes are designed, rather than with the overall burden of taxation in American States (there has not been a State and Local Tax Burden report from the Tax Foundation since April 9th 2022) and European countries, is so disheartening – the Tax Foundation seems to have lost its way and is no longer really doing what it was created to do.
That discussion with supporters of the Land Value Tax is pointless can be seen from the Wikipedia article on the matter – the article is almost entirely a “puff piece” (any real criticism is quickly edited out – so much for “anyone can edit”) of both the Land Value Tax and the economic (the false economics of David Ricardo and others), philosophical, and even theological, theories behind it.
In the West one example of the theological thinking behind the Land Value Tax is the idea, to be found in John Locke and others, that God gave the world to humanity in-common and that, therefore, private ownership has to be justified – either by “as much and as good left for others” or by some form of financial payment (to be collected by the state – for some reason).
Logically a supporter of the idea should be against population increase, for example against immigration, as the more people who came into an area – the more landless people there will be, so the less money each landless person would get (in various benefits and services) from the Land Value Tax.
Henry George reflected this – with his opposition to people going to California, even opposing the building of railways as this would make it less difficult for people to go to California. Even the “Christian Socialist” John Rawls (once very popular in academia) seems to have rejected the idea of a world tax – holding that American taxes should go to Americans in terms of welfare state programs – of course if one “imports the Third World” (the policy of many in the Democratic Party since 1965 – especially during the Biden Administration of 2021 to 2025) then government spending does go on the poor of the world – as they have come to the nation (the same is true in Britain and other nations). Claims, by the CATO Institute and others, that Third World immigrants are “net taxpayers” (that they provide more in taxes than they take in benefits and services) are false. Ideologically motivated deceptions.
For those people who reject the theological basis of the Land Value Tax (and its real basis is theological, see above, rather than in the false economics of David Ricardo and others), the matter is of little interest – if one holds, with Hugo Grotius and others, that God did NOT give all land to humanity in-common – then no “justification” of private ownership is needed, either by “as much and as good left for others” or by some form of financial payment.