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Foreign capital investment is great, so beneficial to the economy. The problem is with the housing market. Perverse subsidies, out of date zoning laws, and a l
by valkea 10y ago
Foreign capital investment is great, so beneficial to the economy.
The problem is with the housing market. Perverse subsidies, out of date zoning laws, and a lot of nimby based lobbying. Fix these things and I doubt anyone, including foreign investors, would be parking capital in property and just leaving it unused.
- r00fus 10y agoAnd that's why you use a tool like taxation to modify behavior to encourage positive outcomes.
- valkea 10y agoTaxation shouldn't be used as a tool to modify behavior. That's actually the exact opposite of good tax policy. Taxes should be broad based, with few exemptions, to raise the needed revenue while minimizing side effects. The distortions in housing markets are often partially caused by tax policy, and those areas should be addressed (tax deductions for mortgage interest for example). Other than that, it's best to actually deal with the root problem: outdated zoning laws.
- stuaxo 10y agoTaxation is a great tool for changing behaviour in many places.
- adamiscool8 10y agoThat's a very parochial view. Foreign capital investment is just a form of economic colonialism, unless properly managed to mitigate the risks it introduces.
- imtringued 10y agoBuilding more houses is great. Buying the same houses for increasingly higher prices is not that great.