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That's not how it would work. The rents are already at the maximum that the market will bear, and will not increase. A rent tax would simply divert some of th
by thrownaway2424 11y ago
That's not how it would work. The rents are already at the maximum that the market will bear, and will not increase. A rent tax would simply divert some of that money from the landlord to the local authority.
- roymurdock 11y agoThis makes sense in a free market where housing is a perfectly fungible, liquid good. In reality, housing/rent is very sticky. If my landlord had his taxes raised, he would simply raise my rent by a corresponding amount. And I would pay, because it would be too much of an issue for me to put my life on hold while I find another place to live. Nobody is paying 100% of their income as rent - there is always room to squeeze more margin out of renters.
- srtjstjsj 11y agoWhy doesn't your landlord squeeze more margin now? Because your landlord is already charging the most they can convince you to pay.
- roymurdock 11y agoWhy aren't you demanding a raise now? Because you're not a perfectly rational being participating in a perfect labor market.