| You are being overly dramatic. Yes, you would be forcing people to write a call option. It doesn't have to be at-the-money. Owners just pick a price that they'd be happy to sell at. Not some mystical 'fair market value' that would ruin them. Of course, land owners would want to keep their tax bill low, so picking the right price to declare is a trade-off. > [...] and then adding insult to injury by not paying them an offsetting risk premium. Please be more careful in your reasoning! You are right that the call option is worth a premium. But that obligation to write the call option comes with ownership of the land, so we can just treat it as another (small) tax on the land. The market price of the land adjusts so that the yearly benefit from owning the land is pretty close to the yearly cost of capital plus sum of all taxes. To simplify: the option premium is automatically offset by lower LVT payments. > I don't know how any moral person could be a proponent of the kinds of abuse and profitable exploitation of average people this proposal would trivially enable. Please elaborate. But please refrain from assuming that landowners are morons. |