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An increase in the tax of the land reduces the purchase price of the land. It's the exact same thing in reverse with interest rates over time. As mortgage inte
by ItsMonkk 5y ago
An increase in the tax of the land reduces the purchase price of the land.
It's the exact same thing in reverse with interest rates over time. As mortgage interest rates drop, the monthly payment is what people look at, so home prices go up.
- giantg2 5y agoI doubt that would actually occur. People with deep pockets could buy it up because they don't care about the tax. They'll just pass the cost on to renters anyways.
- ItsMonkk 5y agoThe reason that most taxes can be passed on is because as price is raised, the supply and demand curve is pushed and less is made. With land, there is a finite supply, none can be created, none can be destroyed, so land value taxes can not be passed on. As the land value will always be zero, there is little value in holding land that you are not using productively, so speculation will drop heavily.
- fennecfoxen 5y ago> With land, there is a finite supply You say all this as if there isn't any meaningful supply-and-demand to be had in the secondary market.