2 ms·

What you're describing would completely cripple the economy and raise rents rather than lower them, the opposite of what you hope for. A severe tax on property

What you're describing would completely cripple the economy and raise rents rather than lower them, the opposite of what you hope for. A severe tax on property would simply force property owners to raise rents. This in turn would price people out of the market. The housing stock would suffer as property owners would have no excess funds to make improvements and repairs to property. Building of new property would slow as the market for property deteriorates. Beyond that... VAT has had disastrous effects on European economies (go look at the price of goods in Europe. Significantly higher in real terms than in the US). Part of this lies in the way VAT obscures the tax portion of cost, allowing governments to surreptitiously raise taxes. This has happened in most developed countries where VAT is implemented. You also mention government doing many wonderful things with its newfound revenue, but the reality is that government spending is usually wasted on bureaucratic bloat and other inefficient allocations.

mcny 7y ago
> A severe tax on property would simply force property owners to raise rents. This in turn would price people out of the market. The housing stock would suffer as property owners would have no excess funds to make improvements and repairs to property. Building of new property would slow as the market for property deteriorates. I am not an economist but this implies property owners are leaving money on the table right now. I don't think that is the case. The market already charges as much as renters can afford to pay. There is not much room for rent to go up. > You also mention government doing many wonderful things with its newfound revenue, but the reality is that government spending is usually wasted on bureaucratic bloat and other inefficient allocations. I absolutely agree with you on this one. This is why I want as much automation as possible. However, having worked in the private sector, I can assure you bloat and inefficiency happens in both public and private sector. The main difference I think is that things are much more transparent in the public sector.
Ma8ee 7y ago
In what way have the VAT had disastrous effects on European economies? Goods are more expensive, but that is no disaster.

mcny 7y ago

> A severe tax on property would simply force property owners to raise rents. This in turn would price people out of the market. The housing stock would suffer as property owners would have no excess funds to make improvements and repairs to property. Building of new property would slow as the market for property deteriorates. I am not an economist but this implies property owners are leaving money on the table right now. I don't think that is the case. The market already charges as much as renters can afford to pay. There is not much room for rent to go up. > You also mention government doing many wonderful things with its newfound revenue, but the reality is that government spending is usually wasted on bureaucratic bloat and other inefficient allocations. I absolutely agree with you on this one. This is why I want as much automation as possible. However, having worked in the private sector, I can assure you bloat and inefficiency happens in both public and private sector. The main difference I think is that things are much more transparent in the public sector.

Ma8ee 7y ago

In what way have the VAT had disastrous effects on European economies? Goods are more expensive, but that is no disaster.