[shhehebehdh]

Normally people talk about externalities of activity, as opposed to externalities of inactivity. I suppose this is just two sides of the same coin. People living in a place does have positive knock on effects. However it feels a little different to me to say, “because you didn’t use your property a certain way, therefore there wasn’t this good secondary effect, therefore you have created a negative externality.” No, I just have declined to create a positive one. If I use my property in a way that is good but not creating the maximum amount of positive externalities, have I still created a negative externality? I don’t think so.

Terminological issues aside, tax is not about fairness. At least not for any one person’s particular definition of fairness, and certainly not mine. Tax, in this case, is about a behavior we want changed, and a means readily to hand by which to change it. Doesn’t really matter if it’s fair.