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Lowering the value of commercial real estate would also be helpful. I know of two stores that had to shut because the landlord raised the rent significantly.
by rogerbinns 3y ago
Lowering the value of commercial real estate would also be helpful. I know of two stores that had to shut because the landlord raised the rent significantly. The landlord did that because the value of the real estate is proportional to the rent rates. The stores stood empty for a considerable time. Nobody won.
- seanmcdirmid 3y agoThe bank judges loan viability based on the rental income of the property. Lowering rent in that case might cause the loan to become underwater (acknowledging lower income), and they are better off not renting at all than lowering the rent (not acknowledging lower income even if that means no income).
- nayuki 3y agoA land value tax (Georgism) would alleviate that problem.
- kasey_junk 3y agoIt probably would! But it’s also a drastic change. A more isolated change would be changing the requirements on how these assets are marked to market.
- treyd 3y agoIt's not that drastic of a change if you tune in a phase in/out of other taxes properly.