“Policymakers can consider a range of different sizes of land tax reforms. We show that the relationship between the land tax rate and the resulting gain in output is monotonically increasing but tapers off as the tax rate rises. In other words, the greatest incremental benefits of a 1 percentage point increase in the tax rate are realized at today’s very low rates, but for the case of LAVT they remain large up through a tax rate of around 10%. Policymakers will of course trade off these economic gains with political considerations, because very high tax rates may be difficult to implement. But in this trade-off, a key consideration is that the output gains of the reform would become so large in due course, and that therefore the number of winners and the size of their gains would be so large, that some relief for deserving losers would then become quite easy to finance.”