You write that "the supply of natural resources is fixed, and so taxes on them do not distort the market at all". This is entirely incorrect. The land value tax at it's full theoretical 100% rate is indeed neutral and does not distort the market, however any other rate does in fact distort the market. Lower land taxes or not taxing land at all results in a market distorted to incentivize land speculation, because of the positive externalities conferred on the land by the surrounding area.
Taxing natural resources you'd find on the land, like say unmined min... (read more)
You write that "the supply of natural resources is fixed, and so taxes on them do not distort the market at all". This is entirely incorrect. The land value tax at it's full theoretical 100% rate is indeed neutral and does not distort the market, however any other rate does in fact distort the market. Lower land taxes or not taxing land at all results in a market distorted to incentivize land speculation, because of the positive externalities conferred on the land by the surrounding area.
Taxing natural resources you'd find on the land, like say unmined min... (read more)