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> We should erode the value of housing and housing debt through inflation If you want to lower house prices, easier to just tax houses/properties more.
by thomasahle 5y ago
> We should erode the value of housing and housing debt through inflation
If you want to lower house prices, easier to just tax houses/properties more.
- kiba 5y agoIf you want to lower house prices, easier to just tax houses/properties more. Increase taxation, the middle class homeowners will revolt. Political will is required to build more housing.
- thomasahle 5y agoSure. Political will and homeowner revolt is why we havent done it already. You seem to say inflation can sidestep these issues. But why should we even assume house prices wont just grow with inflation, or much faster, as has been the case so far?
- imtringued 5y agoIf land value taxes won't happen, then the next best thing is a ground lease for all new plots of land.
- snidane 5y agoLand value tax and ground lease are equivalents. Calling it a lease or tax or fee or whatever is just a political strategy to appeal to the right group. Naming it a tax will surely infuriate right leaning propertarians and common populace. Interesting idea about govt buying up all land and then reimposing LVT on then newly privatised land. I am skeptical, because of 1. government corruption 2. higher chance of experiencing a land market reset through war
- kiba 5y agoGovernment corruption shouldn't be a reason to stop the government from doing anything, unless it is an issue that obviously going to stop effective implementation.
- kiba 5y agoGood point. Inflation does no good if housing undergoes asset inflation faster than inflation can rise.