[zdragnar]

I wonder what percentage of people in California would go bankrupt if LVT were passed implemented there.

Anyone, residential or commercial, with a mortgage would simultaneously find a massive amount of their net value erased while stuck with huge monthly payments on top of massively increased tax bills, unable to sell assuming the higher taxes drive down property prices.

[tick_tock_tick]

Places like AZ and Florida already solved this issue. If there is hardship the property tax accumulates as a lien on the property to be claimed when the property is sold.

[klipt]

You could certainly phase in an implementation over 20-30 years to give the economy time to adjust. Just interpolate the taxes.

In a state with fully implemented LVT, you would expect most people in dense cities to be living in multilevel housing that makes more efficient use of land. Eg if your condo building has 5 floors, you're splitting your land tax 5 ways.

Sprawling single level houses would be a relative luxury.

[griffzhowl]

Isn't it easy to implement a threshold so it's only effective on holdings above a certain value, or exemptions for primary abode or something along these lines?

It's not difficult conceptually to come up with schemes to tax wealth which doesn't unduly harm non-wealthy individuals (however you would define that level for these purposes). It's just that for one reason or another these schemes are not implemented, and one of those reasons is (plausibly) the political influence of wealthy individuals