< Tax land value, you’re punishing people for making land valuable.
No, quite the opposite. The tax is the same irrespective of the productivity of the land. If you make the land valuable, by making it productive, you've decreased the relative cost of the tax. That is the whole point of a LVT.
This is a huge problem where I live. Folks sit on these parcels of land that are taxed at super favorable rates compared to improved properties. This drives up the cost of existing land and makes building additional housing extremely expensive. Their land should be taxed the same rate as my land and they would likely sell as it no longer makes financial sense to hold onto such unproductive land.