Hi Paul, thanks for your engagement. Certain activities are negative externalities (bads) that need to be internalized (accounted for in the cost), and other activities are positive and need to be liberated from the burden of taxation. So, tax bads, not goods is the central point. Which taxes are levied is just as important as how high or low they are.
When the burden of taxation is placed on land, this makes land more expensive to hold. When taxation is placed on improvements like homes, it makes holding homes more expensive. Thus, a tax on land that replaces all other taxes, including those on homes, would make homes cheaper to purchase, hold , and improve because these activities would not be taxed. In contrast, it would make large swaths of unused and speculatively held land expensive to hold.
A tax on land actually makes land cheaper to purchase precisely because it is more expensive to hold; the market is purged of speculators, thus making the relatively small amount of land one needs to construct a home on cheaper to purchase. See David Ricardo’s Law of Rent However, taxes on homes make them more expensive to construct, to purchase, to keep in use, to lease and rent, to fix and improve upon, and even to demolish when a person wants to build a nicer home. So, owning a home would be cheaper than ever under a single tax on land system.
Remember, this tax would also replace the income tax and all other taxes on production, which would mean that people would have more money to spend on less expensive homes.