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we absolutely need to progressively tax property by number of properties owned. As you own more of a scarce asset, margins on rents are driven toward zero. An
by wnc3141 3y ago
we absolutely need to progressively tax property by number of properties owned.
As you own more of a scarce asset, margins on rents are driven toward zero.
An aside, I often see worry of corporate ownership of property. While of course this is an issue, the bulk (72%) 1. of the problem lies with simply affluent people who own (fewer than ten) investment properties. I do think however, a fair penalty is to just tax based on the degree of rentiership from property investing, therefore a marginal tax on number of properties owned seems reasonable.
1 https://www.pewresearch.org/short-reads/2021/08/02/as-national-eviction-ban-expires-a-look-at-who-rents-and-who-owns-in-the-u-s/ https://www.pewresearch.org/short-reads/2021/08/02/as-nation...
- brightball 3y agoAgreed https://news.ycombinator.com/item?id=39293808 https://news.ycombinator.com/item?id=39293808
- TedDoesntTalk 3y agoYour solution to high rents is to increase taxes?
- wnc3141 3y agoEssentially yeah, it suppresses the crowding out effect of homes rented out which otherwise crowds out first time home buyers in terms of price and access to capital. Also by making each marginal investment property more costly, instances of collusion or monopolistic conditions will reduce as, if occupants have a preference for renting (which I would doubt), there would be more smaller landlords -read as more market competition. Unfettered use of housing stock as an investment is inefficient and frankly undemocratic as the delta between ownership and renting entrenches inherited wealth. Ideally, although up for debate, would be to use marginal tax to fund creation of low income housing units as Santa Fe NM has recently implemented as a luxury tax on new home purchases.
- wnc3141 3y agoImportant to note is that rentiership, by definition, is a non productive use of capital. (A housing unit does not produce anything, as other deployments of capital do)