Alright, Tax Wealth, Not Work (TWNW). Let’s say the wealth tax got implemented at 2% on wealth over 10 million. I’m unclear on whether it would increase single home ownership and reduce the number of available rentals and thus make it even more difficult to find living space. Or would the tax revenues from it allow for the construction of more community housing?
It depends on the capacity of the landlords to pass down the increased cost and on how many would sell.
If there is a shortage of rentals, the rents will go up. Many sales may also cause a shortage.
If it’s a tax on “wealth” though, there may be no reason to sell.
Everyone who buys is not longer a renter. So for every rental lost you lose a renter. I don’t see why it would effect it at all.
Well, there is a lack of houses for rent at the moment. Aaand, while writing that, I remembered that there are lot of things standing empty because they are for investment! If those were forced to be sold, that would add more housing stock on the market.
Thanks for the comment.
thats one good thing about high property taxes including the land value tax idea. Makes it harder to sit on real estate because of the recurring costs.