what we need to do is replace income taxes with land value taxes...oh your property is worth 3 million now? Well then that'll be 5k taxes per month.
What? I can't afford that!
Oh, that's sad. I guess you'll have to sell...holding real estate isn't for everybody... and thus --assets will start to be released faster and faster and prices will come down.
Economists generally agree that land taxes are some of the most "efficient" and societally beneficial, because they encourage full utilization of the land.
By having a land tax, you push people towards societally more productive outcomes. E.g. a SFH in city center would have a very high tax rate, encouraging redevelopment to multifamily.
Income taxes do the opposite somewhat, by discouraging more labor.
What? I can't afford that!
Oh, that's sad. I guess you'll have to sell...holding real estate isn't for everybody... and thus --assets will start to be released faster and faster and prices will come down.