3 ms·
Property taxes are definitely in the same vein, and I'd be curious about the same aspect there. Currently, local government regulation seems to be the main mech
by gameman144 5y ago
Property taxes are definitely in the same vein, and I'd be curious about the same aspect there. Currently, local government regulation seems to be the main mechanism to deter this today (e.g. rent control, senior citizen exemptions, single-family zoning), but the "current residents" vs "newcomers" tradeoff is absolutely strong here. One differentiating factor between land tax and property tax, though, is that if I'm taxed on all the additional private developments I make to my property, public development becomes a more attractive option (which I'd expect would make the disincentive weaker with property taxes). For instance, if I would have to pay $2k more a year in tax if I built a pool on my property, I might be more inclined to support the public pool. This would not apply with land value taxes.
For sales tax and income tax, these would apply regardless of location, and apply at the individual level instead of cross-pollinating between individuals. If my neighbor makes twice as much, or buys twice as much, it's easy to rationalize that they pay twice as much tax as me. If my neighbor just bought an identical house to mine for twice what I paid five years ago, though, it is harder to stomach that my tax bill should be twice was it was five years ago as well.