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Oh, yes. Housing is too expensive! Instead of building more housing to compete with it, let's just raise taxes on it! That is unimpeachable and will definitely
by fennecfoxen 7y ago
Oh, yes. Housing is too expensive! Instead of building more housing to compete with it, let's just raise taxes on it! That is unimpeachable and will definitely not result in the housing being more expensive, not at all.
- danem 7y agoI suggest you read up on LVT. https://en.wikipedia.org/wiki/Land_value_tax https://en.wikipedia.org/wiki/Land_value_tax https://www.economist.com/briefing/2018/08/09/the-time-may-be-right-for-land-value-taxes https://www.economist.com/briefing/2018/08/09/the-time-may-b... https://www.strongtowns.org/landvaluetax https://www.strongtowns.org/landvaluetax
- lukifer 7y agoNote that a land value tax implies a tax on ground rent, not on improvements: http://www.landvaluetax.org/what-is-lvt/ http://www.landvaluetax.org/what-is-lvt/ That said, most areas have overly draconian zoning and regulatory costs (driven in no small part by existing homeowners wanting to protect/inflate their own investment); it's a complex issue, and Ricardian rent-seeking is only one factor.
- fennecfoxen 7y agoHousing development is famously undertaken when developers can sell to landlords who wish to make a profit on the improvements only; all parties involved would be quite willing to spend millions of dollars and to lose money, if it's a loss on the underlying land.