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According to this article, there is a realisation that property tax rises can be used to dampen the effects of house price inflation: http://mobile.abc.net.au/news/2016-11-11/property-tax-rise-could-reduce-house-price-booms-and-busts/8018790 I disagree with this article because it is not precise. In application, a "property" tax applies to the value of land and the value of property. To the extent it falls on land value alone, the tax will reduce the likelihood of house price booms, but the efficacy will depend on the tax rate relative to the value of land. A fixed property tax rate for example may reduce house price inflation in Medway but have no real impact in London, because the relative value of land is unequal. The problem with a property tax is that it is too indiscriminate. If they tax just the land value, there will be no adverse economic impacts and indeed it will reduce house price inflation. They need to isolate that the tax needs to be less than or equal to the economic rent in order to have its desired effect.