As the tax rate is increased and approaches infinity as a limit, land value (price) decreases and approaches zero as a limit, and tax revenue increases, approaching the full economic rent as a limit.
A quick tool to find out how much you would pay if income and property taxes were replaced with land value taxes.
A tool to model how taxation affects the economy and the distribution of wealth.
The law of rent is one of the most fundamental laws of economics, yet few have fully appreciated its implications. This tool demonstrates the law of rent and its effect on the distribution of wealth.
This tool demonstrates how different taxes affect sellers and buyers differently depending on their elasticities of supply and demand. Note that for something in perfectly inelastic supply (such as land), the tax is wholly incident on the seller and there is no deadweight loss of taxation.
From the Guardian:
‘Amid a flurry of microeconomic reform proposals, the Institute for Fiscal Studies has thrown its weight behind OECD proposals for a shift away from income taxes to consumption and wealth taxes.
‘In particular, the IFS said: “Replacing business rates with a land value tax would remove a damaging bias against property-intensive production.”‘