3 ms·
My claim isn't about housing prices. It is about the cost of housing. True, a land value tax transfers value from property owners to the government. But paying
by btilly 2y ago
My claim isn't about housing prices. It is about the cost of housing. True, a land value tax transfers value from property owners to the government. But paying that tax represents a cost of housing. Either directly - you're paying tax on your property - or indirectly in the form of rent.
In theory this is net neutral on costs. In practice, it is likely to be an increase immediately because housing prices tend to be "sticky". So it takes time for land value to drop because of the tax.
- adverbly 2y agoAhh that makes sense then. Yep agreed! I got confused because I usually hear people refer to housing prices as property purchase prices, and housing costs to the continuous component. I would have phrased this: > For housing to stop increasing in price, a lot of it has to be built. As "For housing costs to stop increasing, a lot of it has to be built." It's difficult and ambiguous either way though... Costs being plural and price being singular is maybe what threw me off as well? Thanks for clarifying!