The tax should, in fact, cause some landlords / landowners to just abandon their land. This is a critical piece of Georgism; the idea that land is being underutilized, in particular as an investment which is expected to pay off in terms of higher land values / rents later, but also in terms of things like parking lots, where the current value of the use of the land may exceed the current taxes (which include only a portion of the value of the land and the improvements combined) while being lower than the Georgist taxes (which include the entire value of the land and none of the value of the improvements). In particular Georgist taxes should eliminate current incentive structures which “reward” things like keeping an apartment building empty of tenants.
The point of indifference is not the point of indifference in the current economic system, it is the point of indifference in the Georgist economic system.
The tax should, in fact, cause some landlords / landowners to just abandon their land. This is a critical piece of Georgism; the idea that land is being underutilized, in particular as an investment which is expected to pay off in terms of higher land values / rents later, but also in terms of things like parking lots, where the current value of the use of the land may exceed the current taxes (which include only a portion of the value of the land and the improvements combined) while being lower than the Georgist taxes (which include the entire value of the land and none of the value of the improvements). In particular Georgist taxes should eliminate current incentive structures which “reward” things like keeping an apartment building empty of tenants.
The point of indifference is not the point of indifference in the current economic system, it is the point of indifference in the Georgist economic system.