Raising land value tax rates drives down the price of land by reducing the portion of land's output that goes to owners.

“So how does an LVT affect the price of land? Using the bathtub metaphor again, let's put a valve under the tap, so half of the water goes into the tub and half goes somewhere else. The amount of water flowing out  of the tap does not change (the land is as productive as it ever was). However, the amount of water collected in my bathtub does  change; five minutes of flow will produce less water in the tub than it did before. If I'm trying to sell my land to someone, they're going to notice the tax and correctly calculate that it will earn them half as much income over X years, so they'll pay half as much for it.”