Comment by vannevar

The LVT would get rolled into rent, which would propagate through the economy. I think the chief effect of a fixed LVT would be discouraging passive land investment (since you've got to collect rent to pay your LVT). IMO, while this might be beneficial for increasing the housing supply, a progressive LVT would be even better. A progressive LVT would put larger landowners at a disadvantage in the rental market, because their tax would be higher on an equivalent parcel than a smaller landowner. By ensuring a larger number of smaller landlords, I think you'd see a more diverse and competitive rental market.