How would Smith & Ricardo price this one?
Housing economists have a great idea that could fix just about everything – Business Insider
A major problem with taxing land separately from the value of its use, structures, and potential use is that all these elements operate symbiotically to create value. Land in or near areas that are highly desired can generate high “economic rents” (monopoly profit) above normal profit levels in a competitive market in which buyers and sellers have similar bargaining power. Tax assessors’ valuation of empty properties in proximity to developed properties requires assumptions about direction of future economic development that may generate litigation and political opposition. The ability to extract monopoly rent is dormant in vacant land for which there is little or no demand.