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Ive been playing with the math on usong Pareto distributions to provide universal rental assistance. A city could require reporting yearly of all rent prices as

Ive been playing with the math on usong Pareto distributions to provide universal rental assistance. A city could require reporting yearly of all rent prices as part of licensing. Then levy a tax on the 20% most expensive apartments that is sufficient to allow the distribution of that fund to renters in the bottom 20% of income. Or some such scheme. It should provide a strong disincentive on very expensive apartments while allowing the most vulnerable population to live comfortably in 80% of the city's rental offerings.

Plasmoid 3y ago
That would have to be an absolutely crushing tax to make that work. It would also make a really cliff where there are no rental properties between X & Y because the tax pushes up prices so much.
dantheman 3y ago
It'd be a good way to drive wealth out of your city, much like the hollowing out of detroit. Only so many people can live at the expense of someone else before they decide to leave.
robocat 3y ago
> provide a strong disincentive on very expensive apartments Why is that useful? > levy a tax on the 20% most expensive apartments This attitude pisses me off. When is enough taxation fair? Seemingly minor taxes increases in other areas add up to a lot extra in total. I already pay over 50% taxes[1] in New Zealand, but the same attitude as yours is common. I do think it is great to help the less fortunate - that is what most of government taxes are spent on, and why low earners get a boost by paying less tax. The right answer isn't retributive taxes. The right answer is working out how to fix the real estate markets, which are broken because residential property is an investment, when it should be just for housing. Residential property should not be an investment for financial profit - a Ponzi scheme which is screwing everyone except the well off. In New Zealand our property market is as broken as the USA from what I can tell. Building more houses helps according to micro-economics but it isn't the answer: New Zealand is building lots of houses but prices for the majority remain out of reach. There is enough land by definition. [1] Top tax rate in New Zealand is 39% and GST (NZ sales tax) is 15%. And Most investments are taxable here. I'm currently investigating residential real estate investing because there's few other reasonable choices. I hate property investment but all the government incentives push me towards it.

Plasmoid 3y ago

That would have to be an absolutely crushing tax to make that work. It would also make a really cliff where there are no rental properties between X & Y because the tax pushes up prices so much.

dantheman 3y ago

It'd be a good way to drive wealth out of your city, much like the hollowing out of detroit. Only so many people can live at the expense of someone else before they decide to leave.

robocat 3y ago

> provide a strong disincentive on very expensive apartments Why is that useful? > levy a tax on the 20% most expensive apartments This attitude pisses me off. When is enough taxation fair? Seemingly minor taxes increases in other areas add up to a lot extra in total. I already pay over 50% taxes[1] in New Zealand, but the same attitude as yours is common. I do think it is great to help the less fortunate - that is what most of government taxes are spent on, and why low earners get a boost by paying less tax. The right answer isn't retributive taxes. The right answer is working out how to fix the real estate markets, which are broken because residential property is an investment, when it should be just for housing. Residential property should not be an investment for financial profit - a Ponzi scheme which is screwing everyone except the well off. In New Zealand our property market is as broken as the USA from what I can tell. Building more houses helps according to micro-economics but it isn't the answer: New Zealand is building lots of houses but prices for the majority remain out of reach. There is enough land by definition. [1] Top tax rate in New Zealand is 39% and GST (NZ sales tax) is 15%. And Most investments are taxable here. I'm currently investigating residential real estate investing because there's few other reasonable choices. I hate property investment but all the government incentives push me towards it.