Luckily a San Franciscan figured it all out over one hundred years ago: > THE GREAT PROBLEM IS SOLVED. We are able to explain social phenomena that have appalled philanthropists and perplexed statesmen all over the civilized world. We have found the reason why wages constantly tend to a minimum, giving but a bare living, despite increase in productive power: > As productive power increases, rent tends to increase eve…
George was pretty big on the idea that you only can only ethically tax natural assets taken away from the community--e.g., collect ongoing ground rent in exchange for the right to deed a chunk of land and prevent others from using it--and that those funds should then be redistributed to the community as compensation for their loss. He didn't think we should discourage success by taxing labor, trade, and improvements that don't come from nature.
I agree Prop 13 has been horrible for a lot of reasons. But even without it we wouldn't have anything like a Georgist LVT--we'd just have a lot more rent-taking by the state on improvements, on top of all those other disincentives he didn't like, and likely still with no citizen's dividend/UBI to show for it. Home prices might not be quite so damned wacky, though, if we didn't put such a huge disincentive on turnover.