Landlords are taxed. Their rental income is subject to income tax, when they sell the home they have to pay a lot more taxes than if they were selling their primary residence, and they have to pay property tax.
Now, I do think residential real estate rental corporations should be straight up outlawed.
They are taxed, but I think they could be taxed more and better. Specifically, I — and many others, including many an economist — think we ought to be implementing a land value tax.
In fact, it’s so well-regarded a tax that it’s been referred to as the “perfect tax”, and is supported by economists of all ideological stripes, from free-market libertarians like Milton Friedman — who famously described it as the “least bad tax” — to social democrats and Keynesians like Joseph Stiglitz. It’s simply a really good policy that I don’t think is talked about nearly enough.
It reveals that much of the anticipated future tax obligations appear to have been already capitalised into lower land prices. Additionally, the tax transition may have also deterred speculative buyers from the housing market, adding even further to the recent pattern of low and stable property prices in the Territory. Because of the price effect of the land tax, a typical new home buyer in the Territory will save between $1,000 and $2,200 per year on mortgage repayments.
Landlords are taxed. Their rental income is subject to income tax, when they sell the home they have to pay a lot more taxes than if they were selling their primary residence, and they have to pay property tax.
Now, I do think residential real estate rental corporations should be straight up outlawed.
They are taxed, but I think they could be taxed more and better. Specifically, I — and many others, including many an economist — think we ought to be implementing a land value tax.
Why LVT and not just leave it to income taxes? In short, LVT is just a really good tax. Progressive, incentivizes efficient use of land, discourages speculation and rent-seeking, economically efficient, and hard to evade. Plus, critically regarding landlords, land value taxes can’t be passed on to tenants, both in economic theory and in observed practice.
In fact, it’s so well-regarded a tax that it’s been referred to as the “perfect tax”, and is supported by economists of all ideological stripes, from free-market libertarians like Milton Friedman — who famously described it as the “least bad tax” — to social democrats and Keynesians like Joseph Stiglitz. It’s simply a really good policy that I don’t think is talked about nearly enough.
Even a quite milquetoast land value tax, such as in the Australian Capital Territory, has been shown to reduce speculation and improve affordability:
That’s not the point I was arguing. The rage comic said landlords should be taxed, which caries the implication that they aren’t currently taxed.
I agree. They should make it that no one person can own more than like 3 properties or something like that.
Apartments should be owned by the renters. They pay for their management and if it’s poorly managed they can choose to hire someone else.
Same with condos and the absolute nightmare costs of HOA. No HOA should own a community. The community should own the HOA.