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Consumption tax are paid once. Property tax are every year! If you put that money in the bank, you'd only pay taxes on the cap gain, not on the capital itself.
by dorfsmay 7y ago
Consumption tax are paid once. Property tax are every year!
If you put that money in the bank, you'd only pay taxes on the cap gain, not on the capital itself.
- FabHK 7y agoConsumption taxes are paid every time you consume something. You buy an ice cream and eat it, you paid VAT on it. Now with a house, the consumption is living in it, and while you own the house, you pay for that consumption at some rate. A bigger, more expensive house corresponds to more consumption, and thus you pay more tax on it. Consumption of a house is basically the product of house value and time, and that's what you pay tax on.
- dorfsmay 7y agoWhat if you're into houses, you don't have a car, don't have a computer, you spend all your money on a nice house. Why should you pay more local taxes than people who pay one-time taxes on stuff (computers, music, clothing#? If we believe rich people should pay more taxes (higher percentage), then we have already established a system for this. Why not making local taxes a fraction of income taxes? Why are lower class people who's only capital is their house taxed on their capital, while rich people who own bonds and stock not get taxed on THEIR capital?