> Why is it assumed true that individuals do not contribute to the increasing appeal of their neighborhood?

Two things are true: 1. I should have been more precise in my language. "You didn't do anything to make that happen" is a useful generality and not a prescription of every single individual in the community. In this case, we're talking about fairness - which I don't actually care much about myself, but is a point that people most often can emotionally identify with. But, to continue, if you're carrying all that water on behalf of your land value, then good for you! You likely have an existing stake in the community, other than the land that you own (maybe the businesses or houses or other property built on that land or you own a local services business). That is great! The fairness comes from owning the finite resource of land, and not something others can provide (housing, businesses, etc.). I hope you do continue to contribute to your local community and increase its appeal!

2. Your fixation on this point reveals a very fundamental misunderstanding of the goal of an LVT (surely partially my fault). It has to do with efficient taxation. Dollar equal, it's better that your taxes come from the value of the fixed resources of your community rather than things that can be increased. Because then you don't have a depressing effect on productivity and the things, other than land, that make your community nice. It's better that you keep more money from the things you _do_ for your community instead of the monopolies you hold in your community.