Final answer:
Land improvements enable cultivation of poorer quality land, leading to higher rent potential. Taxes on rent may impact landlords' willingness to make enhancements.
Explanation:
Improvements in land allow for poorer quality land to be cultivated and increase rent potential as population and capital grow. Soil-improvements such as drainage and irrigation work fall into this category, enhancing the land's productivity. A tax on rent could potentially hinder landlords from making improvements unless the landlord's profit is excluded from its effects.
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