3 ms·
Taxes are costs, and costs are fungible.
by splitstud 5y ago
Taxes are costs, and costs are fungible.
- gruez 5y agoI think the point is that the tax is structured in such a way that doesn't disincentivize housing stock. Under a land value tax scheme, a landlord is incentivized to produce as many housing units for a given amount of land as possible, because it allows him to spread out the same tax across more tenants. In contrast, a fixed percentage (eg. 10% tax on rent) doesn't have this feature.