4 ms·

How about an exponential land tax? Own one property: no tax. Own two: 1 percent tax on each. Own three: 2 percent on each. Own four: 4 percent on each. Own five

by rcarr 4y ago

How about an exponential land tax? Own one property: no tax. Own two: 1 percent tax on each. Own three: 2 percent on each. Own four: 4 percent on each. Own five: 8 percent on each. Still allows for genuine homeownership, a home in a place convenient for work and a holiday home an achievable aspiration for high performers whilst making mass property ownership uneconomical.

rcarr 4y ago
Also: ban foreign citizens and non-doms from owning more than one property.
- rcarr 4y ago
  Going through my comments and realised that 'foreign citizens' could be interpreted wrong by anyone who comes across this in the future. I meant anyone who doesn't live in the same country as the property they are purchasing e.g wealthy citizens of other countries who are buying property as investment vehicles rather than residences.
Zhenya 4y ago
How does that stop someone from creating multiple LLCs and having the LLC own a home each, for example?
- kelseyfrog 4y ago
  Exponential fees on LLC creation.
- jlokier 4y ago
  Similar to how some tax thresholds are determined on a company-group basis, except grouping by beneficial owner (the "ultimate" owner, i.e. the person who owns the LLCs).
- xdennis 4y ago
  Don't allow LLCs to own homes.
- rcarr 4y ago
  One possible approach would be to mandate that any LLC owning property must have completely transparent financials and ownership records. Any LLC that doesn’t comply has its residential property seized and is banned from purchasing residential property. From this you could then create another rule which stated that any shareholder/owner with a stake greater than 1% of the company (or a smaller percentage for billion dollar companies) is classified as an owner of the property. The exponential land value tax is applied at the rate of the owner/shareholder with the most properties. In addition, the exponential tax could start much higher e.g the first residency held by an LLC is charged at 8% the second at 16% etc. Or we could just blanket ban LLCs from holding residential property. As far as I can tell, the arguments for allowing it to do so are pretty weak. If a company wants shelter for workers it can: A) partner with a construction company to build and sell them to workers B) put money into the local economies in which it operates by paying for hotel rooms The crux of the matter is that until landlord is relegated to small scale side gig rather than ‘most lucrative profession’ as it currently is, this problem will continue to get more and more out of hand. Personally, I think the way out of this is for affected countries to form single issue political parties. Agree or disagree with Brexit, no one can argue that ultimately UKIP was successful in changing the face of British politics. I think it’s about time for a United Kingdom Housing Party to do the same on the real issue underlying much of the discontent of the last few decades.

by rcarr 4y ago

rcarr 4y ago

Also: ban foreign citizens and non-doms from owning more than one property.

rcarr 4y ago
Going through my comments and realised that 'foreign citizens' could be interpreted wrong by anyone who comes across this in the future. I meant anyone who doesn't live in the same country as the property they are purchasing e.g wealthy citizens of other countries who are buying property as investment vehicles rather than residences.

Zhenya 4y ago

How does that stop someone from creating multiple LLCs and having the LLC own a home each, for example?

kelseyfrog 4y ago
Exponential fees on LLC creation.
jlokier 4y ago
Similar to how some tax thresholds are determined on a company-group basis, except grouping by beneficial owner (the "ultimate" owner, i.e. the person who owns the LLCs).
xdennis 4y ago
Don't allow LLCs to own homes.
rcarr 4y ago
One possible approach would be to mandate that any LLC owning property must have completely transparent financials and ownership records. Any LLC that doesn’t comply has its residential property seized and is banned from purchasing residential property. From this you could then create another rule which stated that any shareholder/owner with a stake greater than 1% of the company (or a smaller percentage for billion dollar companies) is classified as an owner of the property. The exponential land value tax is applied at the rate of the owner/shareholder with the most properties. In addition, the exponential tax could start much higher e.g the first residency held by an LLC is charged at 8% the second at 16% etc. Or we could just blanket ban LLCs from holding residential property. As far as I can tell, the arguments for allowing it to do so are pretty weak. If a company wants shelter for workers it can: A) partner with a construction company to build and sell them to workers B) put money into the local economies in which it operates by paying for hotel rooms The crux of the matter is that until landlord is relegated to small scale side gig rather than ‘most lucrative profession’ as it currently is, this problem will continue to get more and more out of hand. Personally, I think the way out of this is for affected countries to form single issue political parties. Agree or disagree with Brexit, no one can argue that ultimately UKIP was successful in changing the face of British politics. I think it’s about time for a United Kingdom Housing Party to do the same on the real issue underlying much of the discontent of the last few decades.