One argument is that much of what is paid for the use of land reflects socially created demand and is not a payment to bring land into existence. This, it is maintained, would be a more equitable way of financing local government. Another argument is that the revenue from a tax on land would permit a reduction of taxes on buildings, which tend to deter new construction. A third argument is that higher land taxes would make for more efficient use of land. There is a great deal to be said in favor of increasing taxes on land and thus lowering land prices.
Government can reasonably take much of the total paid by the user.
A heavier land tax would change the conditions of ownership. The total collected from users would not change, but private owners of land would retain less, the public treasury getting more. The price system would still allocate land use. Taxes on improvements could then be reduced greatly. The tax relief for deteriorated buildings would be slight, but for those of high quality the reduction could be large in relation to net return on investment.