ABSTRACT
An important theoretical assertion suggested by Henry George’s writings on the subject is whether, as communities approach the full collection of location rental values, the selling price of land will fall toward zero. George predicted this outcome will result because location rental values are no longer privatized and therefore cannot be capitalized into selling price. He concluded that “by compelling those who hold land on speculation to sell or let for what they can get, a tax on land values tends to increase the competition between owners, and thus to reduce the price of land” (George 1879, 416).
