4 ms·
I'm not sure I understand why that would be better. Wouldn't that also really penalize individual homeowners and renters?
by pyrophane 7y ago
I'm not sure I understand why that would be better. Wouldn't that also really penalize individual homeowners and renters?
- jachee 7y agoThat could be alleviated by having the owner provide proof that they live on the property they own, and then granting them an exemption. Half-exemptions for rent-seekers who can prove 90%+ occupancy.
- dredmorbius 7y agoApplying a tax commensurate with income-earning potential is the usual explanation. Given the wide range of possible incomes to various professions, this can be problematic. Your $7.25/hr federal minimum wage worker ($14,500/year) competes against a $290k/yr SV tech worker, with 20x the income. Unless that's mitigated by other factors (residence size, amenities, etc.), a land tax might prove further discriminatory. But in general, a tax that's sufficient to kill the prospects of real estate as simply a bankable nonproductive asset would be a net benefit.