If the rise in inequality between labor and capital is due to the rise in land value - as opposed to capital increasing its share of national income - then land value taxation for public benefit would reduce inequality while promoting efficiency.

“The economic inequality as presented in works such as Capital in the Twenty-First Century by Thomas Piketty (2014) has been a global problem, but often incompletely analysed. Critics of Piketty such as Matthew Rognlie (2015) have pointed out that the decline in the portion of income going to wages relative to non-wage income is explained by the rise in land value, not by the rise in (physical) capital value, as suggested by Piketty (2014). Thus, the taxation of land value, for public benefit, replacing other taxes, would reduce inequality while promoting greater efficiency.”

theoretical