5 ms·

Makes sense, but hard to implement. Switzerland taxes the Eigenmietwert (self-renting value) of properties. If live in a self-owned flat, the amount you could

by Hermel 11y ago

Makes sense, but hard to implement. Switzerland taxes the Eigenmietwert (self-renting value) of properties. If live in a self-owned flat, the amount you could have earned by letting the flat to someone else is taxable income. This makes sense in economic theory, but it is not very popular.

cperciva 11y ago
Makes sense, but hard to implement. I'd say the implementation of a land value tax is rather easier than the implementation of a property tax. In both cases, the assessment is done by comparing properties to similar ones which have sold recently; but it's much easier to find a comparable square foot of land than it is to find a comparable 25 year old three-bedroom two-bathroom house which had the kitchen renovated last year but needs repairs to the roof.
ownagefool 11y ago
It's pretty trivial to get round though, give people an exemption on the primary residence. That way, the vast majority are unaffected yet those that invest in land are. In the UK the system is already quite a bit like this. When I sell a BTL property I need to pay Capitial Gains, but not for my primary residence. Sure, it allows some loopholes, but it'll probably save you a lot of votes too.
- deleted 11y ago
  [deleted]
- eru 11y ago
  > Sure, it allows some loopholes, but it'll probably save you a lot of votes too. Alas, yes. Not only loopholes, but favours homeowners, who are already among the better off, over the real poor.
  - ownagefool 11y ago
    Indeed it does. However as you move away from owning being an investment, the same homeowner based wealth will deteriorate and you'd likely own where it's convenient rather than trying to make money. I don't think that's a terrible situation if your goal is to take the teeth out of the property market, rather than trying to destroy wealth in general.

5 ms·

Makes sense, but hard to implement. Switzerland taxes the Eigenmietwert (self-renting value) of properties. If live in a self-owned flat, the amount you could

by Hermel 11y ago

cperciva 11y ago
Makes sense, but hard to implement. I'd say the implementation of a land value tax is rather easier than the implementation of a property tax. In both cases, the assessment is done by comparing properties to similar ones which have sold recently; but it's much easier to find a comparable square foot of land than it is to find a comparable 25 year old three-bedroom two-bathroom house which had the kitchen renovated last year but needs repairs to the roof.
ownagefool 11y ago
It's pretty trivial to get round though, give people an exemption on the primary residence. That way, the vast majority are unaffected yet those that invest in land are. In the UK the system is already quite a bit like this. When I sell a BTL property I need to pay Capitial Gains, but not for my primary residence. Sure, it allows some loopholes, but it'll probably save you a lot of votes too.
- deleted 11y ago
  [deleted]
- eru 11y ago
  > Sure, it allows some loopholes, but it'll probably save you a lot of votes too. Alas, yes. Not only loopholes, but favours homeowners, who are already among the better off, over the real poor.
  - ownagefool 11y ago
    Indeed it does. However as you move away from owning being an investment, the same homeowner based wealth will deteriorate and you'd likely own where it's convenient rather than trying to make money. I don't think that's a terrible situation if your goal is to take the teeth out of the property market, rather than trying to destroy wealth in general.