4 ms·
My city has ridiculously low property taxes. I still pay the same amount I would because supply and demand determines prices, it's just that money goes to renti
by crdoconnor 9y ago
My city has ridiculously low property taxes. I still pay the same amount I would because supply and demand determines prices, it's just that money goes to rentier landlords or to an investment portfolio's CDO via a mortgage instead of to schools and public services.
The reason your condo was relatively cheap is because your city has high property taxes.
- ryanianian 9y agoYup - each city is free to change their tax structure (for residents and businesses) in a way that makes sense for them. Your city may decide it wants to drive out rent-seekers by hugely taxing rental income or raising property taxes on rentals. This would effectively be a business tax. And the town next-door could decide it wants condo real-estate development to attract young urbanites, so it might notice your town's changes and offer tax-free rental income for N years. This allows each city to benefit their tax-base/residents the best.
- crdoconnor 9y agoI'm not exactly sure why cities having the 'freedom' to get played off against one another or to let rentiers suck wealth out of the system is such a good thing. I'd rather politicians didn't have the "freedom" to knuckle under pressure from plutocratic forces and just told large companies and rich individuals to go fuck themselves when they come around demanding handouts.