It depends. In areas where home prices have risen or are relatively high, home improvement activities increase the home value and so that is generally reserved for sales preparation periods. Consumption is delayed until it is untaxed.
Otherwise, I am not sure how taxing land will increase consumption, unless you're saying people will make land productive in order to offset tax liability? In some cases maybe, but certainly not on low-density residential plots.
You're talking about Georgism and taxing unutilized assets. If you have trees on your land, those could be utilized for lumber and you would be taxed on them if if they were unutilized. The same for oil, minerals, even raw land with agricultural potential. The main premise of Georgism is tha the resources belong to everyone and that people should be charged rent for access/ownership of them, whether used or not. This provides incentive for the owner to consume the resource to pay the tax.
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Taxing unutilized assets is the key idea of Georgism. We don't do that in the US, rather we give tax incentives to farmers to underutilize their land.
But taxing resources, whether utilized or not, will increase consumption, right? That doesn't seem like a sustainable option.
It depends. In areas where home prices have risen or are relatively high, home improvement activities increase the home value and so that is generally reserved for sales preparation periods. Consumption is delayed until it is untaxed.
Otherwise, I am not sure how taxing land will increase consumption, unless you're saying people will make land productive in order to offset tax liability? In some cases maybe, but certainly not on low-density residential plots.
You're talking about Georgism and taxing unutilized assets. If you have trees on your land, those could be utilized for lumber and you would be taxed on them if if they were unutilized. The same for oil, minerals, even raw land with agricultural potential. The main premise of Georgism is tha the resources belong to everyone and that people should be charged rent for access/ownership of them, whether used or not. This provides incentive for the owner to consume the resource to pay the tax.