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This article also said > The government will also impose higher taxes on people who sell their home within a year. Why would they raise taxes on people who de
by bern4444 4y ago
This article also said
> The government will also impose higher taxes on people who sell their home within a year.
Why would they raise taxes on people who decide to sell? Raising taxes on sales will decrease the number of sellers. If the goal is to decrease the price of housing, they should want to increase the number of sellers (partly by reducing taxes on sales) to increase the supply of housing.
So backwards.
- bombcar 4y agoThe goal is to dissuade flipping, the same reason we have short and long-term capital gains. Nobody should be buying a house intending to sell it within a year, so the sellers affected are those already affected by some external influence (assuming they weren't trying to flip it). The only way to increase sellers by reducing tax is to make it obvious it's a temporary reduction - if you say "anyone who sells in 2022 will do so with no capital gains" you'll create a lot of sellers, but most of those will just buy similar houses nearby. You need to increase sellers without also increasing buyers, which you do by getting more houses to sell (developers as sellers), or getting people to move away (they sell but don't buy), or by having people sell without buying (they die or move in together, or rent, etc).