Similarly, if the tax on a rental property becomes too great the rent will rise to meet it. And again, people will be priced out of their homes.
This is already possible with property taxes.
FTA the city claims that 97% of homeowners will see a reduction in taxes. Typically, LVT is highest in areas more central to the city (think downtown) and lowers as you move outwards.
This means that, for example, a multitenant strip mall neighboring an Arby’s on a plot of the same size will pay similar amounts of tax. With property tax, the strip mall would be paying significantly more in taxes even though it is a more productive use of land because the development has more value to its owner.
Similarly, the income tax in the US was started to pay for the Civil War. It wasn't until the early 1900s that income (both corporate and individual) got federally instituted.
In essence, the tax history of the US reads "At first there were only excise/consumption taxes, and then the government granted itself powers it never gave back. And now here we are."
As such, my expectation is that the notoriously-super-high-integrity government of Detroit won't do anything that isn't in the best interest of the people. Surely.