Interactive land-tax incidence diagram Land (acres) Rent ($/acre-yr) S: fixed stock of land D: what users pay to use the land Users pay $500 (unchanged) Owner keeps R0 − t Tax = t × Q̄ 50 $500 $350
Tax $150/acre-yr · Users pay $500 (unchanged) · Owner keeps $350 · 50 acres in use (unchanged)
The whole tax comes out of the owner's rent — users pay the same and the same 50 acres stay in use.