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This would be disastrous. We already have a housing shortage, leading to high prices. The answer isn't to make it more expensive than it already is.
by nostromo 4y ago
This would be disastrous. We already have a housing shortage, leading to high prices. The answer isn't to make it more expensive than it already is.
- gremlinsinc 4y agoPretty sure op means to gradually increase taxes the more properties someone owns, to the point it's hardly profitable to have 100 rental properties, when you make the same with 70, because of taxes, so you can sell these and the rise in supply will lower costs to purchase a home, etc. Though, personally I'm more in favor of a land value tax, I think op is on the right path. Having the tax pegged to factors like average wage / rent of an area would help landlords keep it in check, though.
- scotty79 4y agoYeah, that's what I had in mind. Gradual smooth raise. It could also be gradually introduced with rates and increase starting from low levels but increasing each year while keeping close eye on the effect it has on the markets with special focus on the poorest members of society. This tax could also be starting not from 0% but from negative value owners of a single small property might get tax credit that could help them with their mortgage in the environment of dropping property prices. For larger families with larger single properties UBI could help. As for land value I'd like to treat the land as just another property and include its value into the total value that the tax rate is based on. I wouldn't pay attention too much about local wages. I think that information influences property values that the tax rate should be based on.
- scotty79 4y agoWe have affordable housing shortage. This would make a lot of housing quickly affordable. There might be secondary effects as well. Like dropping prices of properties might make land for new developments cheaper.