All I can say is read the empirical results! It's what happens in actual reality in plenty of studies I can cite. Landlords charge the maximum rent that the mar

All I can say is read the empirical results! It's what happens in actual reality in plenty of studies I can cite. Landlords charge the maximum rent that the market will bear, but the land taxes shift what the market will bear, because you can't make more land, and changing how much we make of something is how producers are able to pass on taxes to consumers. > If they can't make a profit at that rate then they'll eventually sell the property, or develop it for a more profitable use. This is exactly the political purpose of land value taxes, by the way! Under a sufficiently high land value tax, the only way to make land more profitable is to IMPROVE it by building useful stuff on it. So if the improvements go untaxed (you don't get penalized for building stuff), but the location is taxed, you incentivize people to build stuff lots of people need, such as dense housing rather than parking lots and single family homes.