Alternative methods may provide greater residential tax relief than a LVT, such as a progressive property tax.
Lars Doucet comments: “LVT proponents claim that an LVT can't be passed on to tenants, but Wyatt is saying that if you turn around and spend that LVT money on making your city better and more desirable, then the increased demand for land in your city might more than offset the negative capitalization of the tax into the sales price of land. That's a solid argument. Notice that Wyatt is here implicitly admitting to capitalization of land taxes into land prices; he's just also arguing that there are other effects in play. What Wyatt doesn't realize is that the natural policy conclusion here is...a 100% LVT that recaptures all the added gains to land value from public spending. He doesn't provide his own empirical study to back up his claims, mind you.”