The taxation of land value as the means towards optimal urban development and the extirpation of excessive economic inequality

Generally, subsidies increase the supply of goods beyond optimal amounts, and generate deadweight losses. The urban fringes receive implicit land-rent subsidies from the governmental provision of public works and civic services paid for mostly by taxing properties, goods, and income, rather than only the land values generated by these public goods. The provision of utilities such as water is also skewed towards subsidizing the fringes. The...