What would stop owners from shifting the burden to the renters?
As of right now this is already how property taxes are handled by most landlords: mortgage + tax + est. cost to fix incidentals + time managing paperwork = rent (in a fair situation - though most will tack on as much extra for "profit" as they can)
So if you have a house worth 600k (12k tax), the mortgage is $3500/mo, they would just charge $4500+ a month to cover their costs.
I think the only way is to add extremely progressive property tax to multiple ownerships, and a name always has to be attached as "owner". So your first house and second might have limited property taxes, but your third would be double, fourth would be quadruple, fifth would be 8x etc.
My example is already an extremely progressive property tax on multiple ownership, but yeah, it can be tailored as needed.
I, personlly, would be in favor of doubling the tax if no one is living there.
As for rent: the price of rent cannot be arbitrarily raised. If renters can buy more cheaply than renting, then landlords will have empty units.
So in your example, renters would just buy and pay the $3500 mortgage instead of renting.
Of course real life is more complex. Renters need access to financing, etc.
I feel like the rent crisis is not something that can be resolved by taxes alone. What is needed is a blanket ban on private rentals.
Got an extra house that you're not living in for some reason? If you want to rent it, then you hand over control to the ministry of housing. No more discrimination against renters, no more invasion of renters privacy, and no more extorsionate rents.
Don't want the government renting it out to 'undesirables' or think they arent paying you enough rent? Quit hoarding and sell it.
Why do you think that "ministry of housing" would not discriminate, not invade privacy and charge fair rent? I'm always fascinated how people believe that some government entity would act as a compassionate and just human being, at the same time bashing rich for being assholes.
Power corrupts. In capitalist society capital brings power, and in socialist state it's bureaucracy. So here you have rich assholes, and when you switch more power to government you'll get paper shifting assholes. Not much will change for people with no power. Probably it will be worse because rich people and their corporations produce valuable goods and services, while paper shifters usually don't need to produce anything apart from more papers.
If power corrupts, then why not vest that power in a democratic institution controlled by the people, rather than leaving it in the hands of whoever has exploited enough of the lir peers to monopolise housing?
Oh, that's a very different discussion... if that housing institution would be elected, preferably on local level, then maybe it could be more accountable.
can we hold private sector accountable more easily than govt?
Absolutely. Government oversight exists for that.
This sounds awfully lot like communism, not socialism.
Blanket bans are never the answer as it will hurt just as many people as it might help.
Not being able to rent a property will mean people with money won't buy them. Which in turn will mean no one wants to pay or finance large developments.
I'm glad we currently don't have this tax system in place otherwise rents would be absurd and growing right now!
What would stop owners from shifting the burden to the renters?
As of right now this is already how property taxes are handled by most landlords: mortgage + tax + est. cost to fix incidentals + time managing paperwork = rent (in a fair situation - though most will tack on as much extra for "profit" as they can)
So if you have a house worth 600k (12k tax), the mortgage is $3500/mo, they would just charge $4500+ a month to cover their costs.
I think the only way is to add extremely progressive property tax to multiple ownerships, and a name always has to be attached as "owner". So your first house and second might have limited property taxes, but your third would be double, fourth would be quadruple, fifth would be 8x etc.
My example is already an extremely progressive property tax on multiple ownership, but yeah, it can be tailored as needed.
I, personlly, would be in favor of doubling the tax if no one is living there.
As for rent: the price of rent cannot be arbitrarily raised. If renters can buy more cheaply than renting, then landlords will have empty units.
So in your example, renters would just buy and pay the $3500 mortgage instead of renting.
Of course real life is more complex. Renters need access to financing, etc.
I feel like the rent crisis is not something that can be resolved by taxes alone. What is needed is a blanket ban on private rentals.
Got an extra house that you're not living in for some reason? If you want to rent it, then you hand over control to the ministry of housing. No more discrimination against renters, no more invasion of renters privacy, and no more extorsionate rents.
Don't want the government renting it out to 'undesirables' or think they arent paying you enough rent? Quit hoarding and sell it.
Why do you think that "ministry of housing" would not discriminate, not invade privacy and charge fair rent? I'm always fascinated how people believe that some government entity would act as a compassionate and just human being, at the same time bashing rich for being assholes.
Power corrupts. In capitalist society capital brings power, and in socialist state it's bureaucracy. So here you have rich assholes, and when you switch more power to government you'll get paper shifting assholes. Not much will change for people with no power. Probably it will be worse because rich people and their corporations produce valuable goods and services, while paper shifters usually don't need to produce anything apart from more papers.
If power corrupts, then why not vest that power in a democratic institution controlled by the people, rather than leaving it in the hands of whoever has exploited enough of the lir peers to monopolise housing?
Oh, that's a very different discussion... if that housing institution would be elected, preferably on local level, then maybe it could be more accountable.
can we hold private sector accountable more easily than govt?
Absolutely. Government oversight exists for that.
This sounds awfully lot like communism, not socialism.
Blanket bans are never the answer as it will hurt just as many people as it might help.
Not being able to rent a property will mean people with money won't buy them. Which in turn will mean no one wants to pay or finance large developments.
I'm glad we currently don't have this tax system in place otherwise rents would be absurd and growing right now!