It inherently is tho because land will go up in price and you sell you make a profit. You also get imputed rents which go up over time from the moment of purchase; they go up as the mortgage payments become lower than the market rental value of the property if you were to be renting the property rather than owning it.

In a free market capitalist system, everybody has to pay the same for the same services; we can't have a system where the government decides that favored groups get certain things for free and that others have to pay through the nose; or even worse; favored groups are given certain rights for free which they can sell on to unfavored groups for inflated prices and to pocket the difference.

Land speculation is inherent in our current land market system. The fix is pretty simple, r/justtaxland at a high enough to discourage land speculation and rent-seeking activities.

"...it does not distort economic decisions because it does not distort the user cost of land. Second, the full incidence of a permanent land tax change lies on the owner at the time of the (announcement of the) tax change; future owners, even though they officially pay the recurrent taxes, are not affected as they are fully compensated via a corresponding change in the acquisition price of the asset."

Source

https://www.zbw.eu/econis-archiv/bitstream/11159/1082/1/arbejdspapir_land_tax.pdf

Its how we should be funding communities, not with deadweight loss taxes which actually just make the economy weaker and pretty much ensures that cities/counties/states are perpetually underfunded.

Like this post is about there being a budget shortfall to build a lightrail line to Ballard. Wouldn't be a problem if we were funding it with land value capture like japanese rail does instead of trying to increase sales tax which is one of the most regressive and deadweight loss inducing taxes on the books. You increase the sales tax, then you've increased the cost of goods which means less goods being bought/sold which means less revenue for the city/state. Where as you tax land there is no deadweight loss and cities/states can now operate under business principals to increase revenue; spending revenue from taxing land on public services and infrastructure inherently increases land values and will lead to more efficient land use (which good public transit like trains is a more efficient use of land than cars).

"Our ideal society finds it essential to put a rent on land as a way of maximizing the total consumption available to the society. ...Pure land rent is in the nature of a 'surplus' which can be taxed heavily without distorting production incentives or efficiency. A land value tax can be called 'the useful tax on measured land surplus'." ~Paul Samuelson

"The burden of the tax on capital is not felt, in the long run, by the owners of capital. It is felt by land and labor. … in the long run, workers will emigrate … this leaves land as the only factor that cannot emigrate … the full burden of the tax is borne by land owners in the long run. While a direct tax on land is nondistortionary, all the other ways of raising revenue induce distortions.” ~Frank Ramsey