1. Land taxes would also be capitalized into home prices.
2. Georgists like to incorrectly claim that an LVT would spur further housing development. This is wrong. The only way this is right is if you use the revenue from an LVT ***to reduce property taxes*** (which would also be true of any tax hike paired with a property tax cut).
expensive_flatulence on
Feel you bro. Really feel you.
Boerkaar on
it may get capitalized into the sales price, but it also disincentivizes purchasing in the first place because the asset’s total cost of ownership remains the same.
you can’t engineer your way into abundance with traditional property taxes, because they don’t incentivize development. you either need to juice supply directly with subsidies or indirectly with an LVT. this just changes the accounting treatment.
Apbuhne on
Okay? If your home isn’t selling at 450k, what is going to happen if you wrap the tax in and make it 475k?
semideclared on
The US Middle Class^TM has a weird relationship with money and its why markets arent working. People will pay it for their housing. They pay it for their cars (SUV/Trucks). Status has affected the market a lot more than I think people thought it would.
5 Comments
1. Land taxes would also be capitalized into home prices.
2. Georgists like to incorrectly claim that an LVT would spur further housing development. This is wrong. The only way this is right is if you use the revenue from an LVT ***to reduce property taxes*** (which would also be true of any tax hike paired with a property tax cut).
Feel you bro. Really feel you.
it may get capitalized into the sales price, but it also disincentivizes purchasing in the first place because the asset’s total cost of ownership remains the same.
you can’t engineer your way into abundance with traditional property taxes, because they don’t incentivize development. you either need to juice supply directly with subsidies or indirectly with an LVT. this just changes the accounting treatment.
Okay? If your home isn’t selling at 450k, what is going to happen if you wrap the tax in and make it 475k?
The US Middle Class^TM has a weird relationship with money and its why markets arent working. People will pay it for their housing. They pay it for their cars (SUV/Trucks). Status has affected the market a lot more than I think people thought it would.