Every single LVT proposal includes an extremely important stipulation: deducting improvements from the total value, and only taxing the resulting amount. The co

Every single LVT proposal includes an extremely important stipulation: deducting improvements from the total value, and only taxing the resulting amount. The core thesis is that you don't want to dis-incentivize productive economic activity, and simply holding onto land is unproductive. LVT (and Georgism writ large) propose to tax the unimproved value of land. This is a form of discriminating the source/type of value.