It strongly disincenctivises speculation and incenctivises productive use. It ensures that a person claiming ownership of land makes more productive use of it than the cost of depriving society of use of that land. As a cherry on top, the income from LVT can be used to reduce taxes on labour, or simply to be given back as a citizen's dividend.
Those that have accumulated wealth and power it would be in their interest to increase rather than decrease the scheme-ines of the political system.
This concept has to have a name?
Indeed, jt is perhaps the most central political problem: how does a class that doesn't have power wrestle it from those who already have power?
As for the name, how about "human history"? :)
E.g. my "house" is valued at 700k. But the appraisal puts that at $280k structure and $420k land. 1% of 700k is 7k, but 1% of 420k is 4.2k.
We can fiddle around the edges, e.g. the tax being 50% of market rent rather than 100%. But the principle remains the same.
Note also that houses used as main dwellings would be exempt or pay a heavily reduced rate.
EDIT: So taking that example, let's say your house rents for 1000$ (I've no idea if this is reasonable or not). Land according to your appraisal is 60% of the property value, so land rent, that is, what you owe as LVT, is 600$/mo or 7200$/yr.
This isn't usually part of LVT proposals, and for good reason. LVT should apply to all land everywhere, or else it becomes much less effective.
It obviously would hit an equilibrium at some point but I'm not sure where.
Land developers and people would naturally become economically incentivized to live in apartments as a result, unless they live somewhere somewhat rural already.