Killer arguments against LVT, not. (1)

From here

Ian B: "one of the problems with an LVT is valuation. The problem is, the LVT itself affects the value. The first round of valuations can be based on market prices; once the LVT is in place there is no market price and assessors must try to guess what the land would have been worth if there were no LVT, which will over time simply deviate from whatever it would have been. It's impossible to guess at a price in the marketplace, since prices are only set at the instant of an individual trade."

To which Paul Lockett replied:"That might be true if LVT were set at 100% of the rental value, but for anything less than that, there will be a residual selling price which can be assessed. In effect, this is the situation we have anyway, because prices are already suppressed by Council Tax and Business Rates."

Which I echoed in my response: "Of course taxes on property affect values (e.g. council tax, business rates, stamp duty land tax, TV licence fee, inheritance tax, capital gains tax, s106 agreements etc) as do subsidies for land values (Housing Benefit, Council Tax Benefit, CAP subsidies) which is why they ought to all be chucked in the bin and replaced with a fiscally neutral LVT, in the interests of simplification, if nothing else."

Thinking on, is LVT much different from an interest-only, non-repayable loan from the goverment to 'buy' the location element of a property (you'd still borrow money from a normal bank or building society to pay for the bricks and mortar), which is cancelled in full when you sell the property again? Seeing as the government, i.e. HM Land Registry, are the only people who can guarantee title to any particular location, would it be a crime to say that you can only borrow money from the self-same government to buy land?

Only instead of having a fixed amount of loan with a variable interest rate, the rate is fixed buy law, and the amount of the loan is variable (it will go up or down it property values go up or down, in the long run it will go up with rising incomes). Interest rates and credit terms can change, favourably or adversely, but this does not deter people from buying property, does it?