4 ms·

Totally wrong. You can't pass on land value tax, prices are set by the ability to pay and taxing the landlord does not increase the ability of the tenant to pay

Totally wrong. You can't pass on land value tax, prices are set by the ability to pay and taxing the landlord does not increase the ability of the tenant to pay. You don't know how prices are set.

sokoloff 10y ago
Who do you think pays the real estate taxes now in an occupied rental? Where does the money come from? Why are those answers different (or the same)?
- branchless 10y ago
  You have the same idea on how prices are set as children do.
  - sokoloff 10y ago
    Yes, even my children can understand this.
    - branchless 10y ago
      I guess George and Friedman were behind your kids then: http://www.wealthandwant.com/HG/why_the_landowner_cannot_shift.html http://www.wealthandwant.com/HG/why_the_landowner_cannot_shi... http://www.economist.com/blogs/freeexchange/2015/04/land-value-tax http://www.economist.com/blogs/freeexchange/2015/04/land-val... Friedman prefers it: https://www.youtube.com/watch?v=yS7Jb58hcsc https://www.youtube.com/watch?v=yS7Jb58hcsc
      - sokoloff 10y ago
        I substantially agree with Friedman that taxing the unimproved value of land is the least bad tax, but I see no evidence to suggest that he thinks it will be paid effectively by the legal owner of the property (the landlord) rather than passing it along to the beneficial user of the property (the tenant). It would seem strange indeed that the user would pay the tax if they owned the house, but would avoid entirely the effect of the tax if they rented the property and the landlord would pay the tax entirely, passing along none of it to the tenant. I have serious doubts that either of us will convince the other on this topic. With that, I wish you well and if you wish to never own property, may you entirely avoid the effects of land value taxes.
jessriedel 10y ago
You're making the claim that demand for housing is infinitely inelastic, which just isn't the case. If something causes the price of all housing to rise, people will be forced to devote a larger fraction of their income to housing.
- sokoloff 10y ago
  Yes. Especially if the thing that causes rental house prices to rise also causes alternatives to rental housing to rise...
- branchless 10y ago
  No you are wrong, that's not how prices are set. Supply in urban centres is already below demand leading to bidding, setting the price by affordability. We just had this in the UK. The government put up costs for landlords who all said rents would rise. They fell because people have less money due to inflation in other cost areas.

Totally wrong. You can't pass on land value tax, prices are set by the ability to pay and taxing the landlord does not increase the ability of the tenant to pay. You don't know how prices are set.

sokoloff 10y ago

Who do you think pays the real estate taxes now in an occupied rental? Where does the money come from? Why are those answers different (or the same)?

branchless 10y ago
You have the same idea on how prices are set as children do.
- sokoloff 10y ago
  Yes, even my children can understand this.
  - branchless 10y ago
    I guess George and Friedman were behind your kids then: http://www.wealthandwant.com/HG/why_the_landowner_cannot_shift.html http://www.wealthandwant.com/HG/why_the_landowner_cannot_shi... http://www.economist.com/blogs/freeexchange/2015/04/land-value-tax http://www.economist.com/blogs/freeexchange/2015/04/land-val... Friedman prefers it: https://www.youtube.com/watch?v=yS7Jb58hcsc https://www.youtube.com/watch?v=yS7Jb58hcsc
    - sokoloff 10y ago
      I substantially agree with Friedman that taxing the unimproved value of land is the least bad tax, but I see no evidence to suggest that he thinks it will be paid effectively by the legal owner of the property (the landlord) rather than passing it along to the beneficial user of the property (the tenant). It would seem strange indeed that the user would pay the tax if they owned the house, but would avoid entirely the effect of the tax if they rented the property and the landlord would pay the tax entirely, passing along none of it to the tenant. I have serious doubts that either of us will convince the other on this topic. With that, I wish you well and if you wish to never own property, may you entirely avoid the effects of land value taxes.

jessriedel 10y ago

You're making the claim that demand for housing is infinitely inelastic, which just isn't the case. If something causes the price of all housing to rise, people will be forced to devote a larger fraction of their income to housing.

sokoloff 10y ago
Yes. Especially if the thing that causes rental house prices to rise also causes alternatives to rental housing to rise...
branchless 10y ago
No you are wrong, that's not how prices are set. Supply in urban centres is already below demand leading to bidding, setting the price by affordability. We just had this in the UK. The government put up costs for landlords who all said rents would rise. They fell because people have less money due to inflation in other cost areas.