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How about if you could be $6 million dollars richer if you could stay for another decade? Why should you be taxed out of potential unrealized gains?
by southphillyman 8y ago
How about if you could be $6 million dollars richer if you could stay for another decade? Why should you be taxed out of potential unrealized gains?
- opportune 8y agoBecause a higher price typically indicates that the property’s utility has increased. Think about what a waste an empty plot of land or a large single family house would represent in Lower Manhattan. It is good to punish speculation that hinders actual use In other words, “investing” in property by purchasing it but not putting it to use is an unproductive investment
- RestlessMind 8y agoThat is an interesting perspective. Do you think a lot of people think like that? Or whether it is more likely that people simply purchase their homes in youth, go on with their lives, grow old there and one day find out that their community is desirable and thus their property taxes have spiked? And that they might be kicked out of their homes only because they are now living on fixed incomes and hence cannot afford increased taxes? I bet more people will be in the later bucket than the ones who analyze things like you do. Since (property) tax policy depends on politics, which is driven mostly by emotions rather than reason, how would you persuade people to think like you? And if one cannot persuade them and simply try to impose one's preferred tax policy by whatever means, then we will see a tax revolt similar to what happened in 1978 with Prop 13.
- JamesBarney 8y agoI think lots of people pursue non optimal tax strategies because being kicked out of your house for being a multi-millionaire is more emotionally salient than all of the good the government can do with increased revenue from property taxes.