4 ms·

Yeah usually from taxes around home ownership. People who rent have this hit them less.

• dragonwriter 9y ago
  > Yeah usually from taxes around home ownership. Real property in general, not just homes (and even moreso, not just owner occupied homes.) But also can be sales taxes. > People who rent have this hit them less. Wrong. Property taxes (even those limited to residential property) hit renters at least as much as people living in homes they own. Sure, the landlord gets the tax bill, but that immediately goes into setting rent.
  • dllthomas 9y ago
    Depending on circumstances, landlords may eat tax increases in the short term.
  • usaar333 9y ago
    > Wrong. Property taxes (even those limited to residential property) hit renters at least as much as people living in homes they own. Sure, the landlord gets the tax bill, but that immediately goes into setting rent. To a degree; see the argument for land value tax which is close: https://en.wikipedia.org/wiki/Land_value_tax#Efficiency https://en.wikipedia.org/wiki/Land_value_tax#Efficiency If the supply of homes are relatively inelastic, the landlords are already maximizing the rent the market will pay. So they can't pass tax increases on to renters -- as they are already charging the maximum renters would pay! (This starts to break down only if new housing is no longer built due to lower returns or owners devalue their housing to cut taxes)