The tax doesn't really increase wealth disparity, as your example with no tax requires someone being able to buy the land in the first place. If the land is still very desirable, the person that owns a very well located plot is extremely wealthy by investing when it was cheap, or having a lot of money. The wealth disparity is still there, just with a different winner.
Your surplus idea has significant problems: First, good luck if you aren't owning a single family home, as then you aren't tax free. Second, that you can still massively speculate by buying the highest valued land you can, in the largest plot possible, and then have the best leverage. So prices of land don't go down, but way up! And that's while the land is also less useful to neighbors, as a large plot with a house in it is far worse than, say, a corner store, a park, or an office. So you are rewarding the land use that is the lowest value to neighbors, while theoretically calling that affordability.
If you want more desirable land to be available to more people, the only sensible alternative is to make more people be able to use it at a time: Anything else is just picking a different favorite way to decide who gets to use it/buy it. It also makes the land more useful in general: The bay area would be much lower balue than it is now if it was occupied by a sole proprietor who is the only one traversing its current streets and buildings.
> The tax doesn't really increase wealth disparity[...]
Counterpoint:
Where I live the land values have, at minimum, 4x'ed in the last couple of decades. This used to be a sleepy little retirement town, where retirees lived far away from the city, where nobody was interested in living except for those retirees -- hence why it was so inexpensive.
Those retirees are now being driven out en masse because they can no longer afford their property taxes.
These people retired on salaries and retirement packages (if they were lucky) from twenty and thirty years ago. They do not have an income beyond that. They are not millionaires, or anywhere close. Often, they're retired blue collar workers, barely getting by. They cannot actually purchase an equivalent property if they sell their own even at the higher rates--
--because they can no longer afford the taxes on it, and all the other properties around them have gone up just as much in value. They were driven up by the vastly wealthier tech types. These people have nowhere reasonable to move.
Bear in mind, we're not necessarily talking about multi-acre properties here, btw; we're talking modest homes that these people have been living in for fifty or more years.
They're being driven out because the much richer folk value their property. And to make matters worse? If they do sell the property, they instantly lose what little tax cap protection they had, so they'll be paying even more in taxes.
How is that not wealth disparity? If the tax hadn't gone up, they'd still be happily living there. They're only being pushed out because the younger, richer folk want their land.
If that's not increasing wealth disparity, then I don't know what is.
That's not a problem with land taxes, that's a problem with the pensioners declaring that they should stop working at what turned out to be an economically unfeasibly low age after we extended life expectancy. Often with crazy stuff like final salary pensions that they obviously never paid anywhere near enough for. That no generation, before, and probably after, will be able to afford to be economically inactive for 20-30 years + the 15(+) years from childhood in unskilled or low skilled jobs.
At least until we (hopefully) make a post-scarcity economy.
Young people used to be able to afford a home at 25. Old people used to be able to afford property taxes in their retirement for their family sized home. The old people are in the same boat as everyone else. It's just manifesting differently for them. And the root cause is having to pay for an aging population, which is them!
On top of that, that home might have been modest when they had a family and a job, now it's extravagant. Now they should downsize out of the family sized home they're occupying with 1-2 people. And they'll still make a ton of money out of it.
Again, this is the first generation that can live like that. On previous generations the family home would have had the next generation living in it by now, instead 1 or 2 people are taking up a huge amount of land and rooms when they could be living in a flat.
By its intrinsic structure LVT discourages speculation.
Georgian proponents would say that this should not happen that pensioners are being driven out because land values don't rise as much because there is no land speculation, and they pay the LVT instead of rent, mortgage and/or property tax.
I think you'll find that even as land values have increased, your local city or county has been slashing tax rates, such that taxes paid have not gone up for these people at all, or only slightly. Heck, if you're in California they're probably paying about $10 in property taxes due to Prop. 13.
To be fair, anyone that wants to know where you live can go to your website (that you put not only in your bio, but even in your nickname) and visit the "about" section. But I doubt parent did that.
Your surplus idea has significant problems: First, good luck if you aren't owning a single family home, as then you aren't tax free. Second, that you can still massively speculate by buying the highest valued land you can, in the largest plot possible, and then have the best leverage. So prices of land don't go down, but way up! And that's while the land is also less useful to neighbors, as a large plot with a house in it is far worse than, say, a corner store, a park, or an office. So you are rewarding the land use that is the lowest value to neighbors, while theoretically calling that affordability.
If you want more desirable land to be available to more people, the only sensible alternative is to make more people be able to use it at a time: Anything else is just picking a different favorite way to decide who gets to use it/buy it. It also makes the land more useful in general: The bay area would be much lower balue than it is now if it was occupied by a sole proprietor who is the only one traversing its current streets and buildings.