On a post on the Facebook LVT group, one Simon McKenna made the following comment:
"..the private collection of rent is not only economically imprudent because it periodically destroys the economy, it is wrong!"
Leaving aside the periodic destruction of the economy, I don't think that it is a valid argument for LVT that it will be an instrument of social justice. This idea has quite some traction, especially amongst the ranks of the class warriors and ties into the populist landlord-bashing cause of enduring appeal.
However, there are flaws:
1. Ricardo's Law of Rent indicates that the raising of tenants' incomes caused by the lifting of other taxes on economic activity will enable landlords to raise rents to compensate for the LVT they have to pay, also, as mentioned in previous posts, the increase in economic activity caused by the removal of these taxes will have a similar effect. Although rents will be stripped of their location value, given 100% LVT, the non-location value part of the rent will increase, across the board.
2. This means that, although in places where location value is very high, e.g. in London, the fall in rent receipts will be such a high percentage that it couldn't possibly be matched by a rise in income, given current levels of overall taxation, in areas of very low location value, e.g. Neath, then the fall in rent receipts due to LVT would be almost zero, whereas almost everyone would be saving at least 20% VAT, even if they have no income worth taxing, so landlords would be better off.
3. Since farmland has been deprived of all location value by the Town and Country Planning Acts, it will not be taxed and so farm rents will be unaffected.
So, numerically, the majority of landlords would benefit from a transition to 100% LVT as the sole form of taxation, including some of the richest and most aristocratic. That doesn't look like much of a victory in the class war.