Comment by itsdrewmiller
1 day ago
The author is quite clear that they are just pointing out that the LVT has some downsides, and are not trying to make any case about its overall value. It's good for LVT supporters to understand the counterarguments and be able to weigh them and rebut them (or change their mind! but hopefully not in this case because the counterarguments are very weak).
I don't understand your "fundamental rule of economics" claim - carbon taxes are a clear counterexample, I would think.
If the tax equals the externalized costs of burning carbon, and people continue to burn carbon, burning carbon is "good".
The whole point is to tax the bad externality rather than tax the good thing (energy production, or whatever). That doesn't make carbon production good, it just means that you aren't taxing the externality enough to discourage the underlying good activity.