> Land ("location") is a scarce economic good, with different locations being valuable for different purposes. Rendering it revenue-neutral would lead to misall

> Land ("location") is a scarce economic good, with different locations being valuable for different purposes. Rendering it revenue-neutral would lead to misallocation. This is the core of your misunderstanding. Yes, location is a scarce economic good. Rendering the ownership of it (rent collection) revenue neutral, while keeping the utilization of it (productive activity at a location) totally untaxed, is how to guarantee correct allocation. Those who can be most productive at a given location will come to utilize it. Allowing the monopolistic ownership of location without utilization to be profitable is what leads to misallocation. Those rich enough to bid for a location will collect rent from those who productively utilize it. https://upload.wikimedia.org/wikipedia/commons/a/aa/Everybody_works_but_the_vacant_lot_%28cropped%29.jpg https://upload.wikimedia.org/wikipedia/commons/a/aa/Everybod...