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The landowners pay the tax. Because of the vertical supply curve (land supply is fixed), it does not get passed on. This is true for any good that has fixed sup

• s1artibartfast 4y ago
  But the Assumption of a vertical supply curve is absurd. Land quantity is fixed but desirable land is flexible. From the outside this sounds like crazy cult thinking. May be applicable for a but Island like Singapore or Hong Kong but not the United States with vast swathes of usable land. Someone can go from Prime real estate in downtown San Francisco to rural Montana. As I said before, this ignores the fact that a remote googler can buy 100 acres with near 0 alternative land use value. It also ignores the regressive nature of the tax. Many places have a vertical Supply for water, but that doesn't mean raising tax revenue based on water consumption isn't regressive